Manufacturers in China
Manufacturing in China - Foreign Investment Downtrend
Chinese Manufacturers Consider Expansion into Russia
5th July 2005
Today’s edition of the China Daily reviews plans by a number of Chinese
vehicle manufacturers to set up assembly plants to serve Russia’s expanding
new car demand, using mainly Chinese-made components.
Nanjing Automobile Group plans to build up to 40,000 LCVs in Russia by 2010,
in what would be the largest Chinese-owned overseas deal to date, though a
joint venture arrangement with a Russian partner is also mentioned.
Chery Automobile, having already announced plans for exports to Europe and
the US, is to build up to 6,500 cars and SUVs in Russia from 2006.
First Automotive Works (FAW), China's biggest state-owned manufacturer and
one of VW’s JV partners, began assembling vehicles at an existing Russian
plant last month, and may possibly build its own Russian plant. Its
production in Russia will reach 800 to 1,000 SUVs and pickups this year and
up to 6,000 units next year.
Among other Chinese manufacturers’ overseas production efforts, Chery began
assembly in Iran in late 2004, and Geely signed a joint venture agreement
with a Malaysian partner in May, expecting to build 30,000 units in 2005. A
month earlier, Brilliance China signed an agreement to produce up to 10,000
Zhonghua saloons in Egypt next year with a local partner.
China Daily quotes Jia Xinguang of the China Automotive Industry Consulting
and Development Corp.: "Chinese automakers are competitive in quality when
compared with their Russian counterparts and in prices when compared with
their Japanese and South Korean rivals."
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