Activity intensification of Chinese automakers in Russia | InvestExp

15 Oct 2014 | Author: | Comments Off on Activity intensification of Chinese automakers in Russia | InvestExp

Lifan Breez

Activity intensification of Chinese in Russia

Updated August 21,

Recently several statements intensification of the Chinese automakers#039; in Russia were announced at Despite the severe obstacles in the way of companies in Russia, the prospect of at the growing market is of primary for the players from the most populated country in the world.

The Automobile Plant (TagAZ) that it concluded certifying cars as Vortex Estina Chery Fora) and Chery of its own production. Welding and assembling of makes will be performed in the TagAZ#039;s lines in the active departments. So, it means that the of the welding and assembling will the level of cars produced in

The technological upgrades made by the specialists resulted in the significant of ruggedness and safety of car#039;s since this was proved by the of frontal and side crash As for the other rules, the produced meet Russia#039;s safety This factor is of essential for the promotion of products at the Russian as analysts consider. Still, the cars#039; quality and safety some doubts.

In the nearest future, TagAZ to receive Vehicle type to the indicted cars and by August-end the starts shipping the trade to dealers.

As it came out recently, the auto plant, Derways, the pilot batch of Lifan cars with the hatchback The release of this make place on Lifan#039;s booth the framework of the International Moscow Salon 2008 in August, 7, and in autumn this new development to the market.

The car is equipped with or 1,6L engine, and its configuration power steering, air conditioner, all of the systems, front airbags, ABS and Automir Company, the unique of Lifan cars in Russia, offer to the Russian consumers a hatchback for RUR 290 000-330 000 (without the to Russia#039;s regions).

According to the information of the analytical Avtostat (Tolyatti), in July the Derways#039;s plant launched a new line, w here Lifan cars are assembled now (SUVs#039; remains in the former departments, but be stopped in the nearest future). In the Cherkessk plant is planning to nearly 8 000 of Lifan Breez (of about 75% are sedans) and nearly 200 000 of SUVs.

In 1Q 2009 Lifan cars will be produced at the capacity after the welding and departments will be launched. The new capacities will total 50 000 of per year with the two-shift that will permit to the production to 75 000 of units. Moreover, now is designing the third plant the capacity of 150 000 cars per year, the company plans to produce the coupled with the Chinese and automakers, with which is holding talks about the

The AMUR plant, where the of the Chinese SUVs has been launches another project. In Company, the unique distributor of and ZX in Russia, reported about the closing of the Novouralsk conveyor Their production was suspended at the of the year because of the introduction of 3 toxicity regulations in Russia.

Lifan Breez

Currently, the AMUR plant the new ecological standard certification of ZX cars, and in the nearest future, the SUVs will return to the conveyor line. It is better to that their production at the started in May 2, 2007. The agreement ZX Auto Company foresees the of 3 000 Landmark cars per year.

within one and a half year, the should develop its own production of bodies, and in the nearest 2 or 3 years it localize no less than 30% of components. In the meantime, Incom-Auto temporally imported ZX Landmark in 1Q 2008. According to the data of within the indicated period the sold 694 units of SUVs, as as ZX Grand Tiger pick-ups.

By the year-end the company plans to 1 500 of ZX.

Despite such success, analysts revised the forecasts the growth rates of the Chinese stake at the Russian auto It is almost impossible now to get privileges for the cars#039; assembly on the Russian Chery#039;s SKD at Avtotor plant the use of the special economic area#039;s in Kaliningrad is suspended.

Geely at the AMUR plant in Novouralsk slow paces. The Cherkessk plant demonstrates very assembly rates of the Chinese as well. Other Chinese aren#039;t even launched

So, the Chinese auto industry show any powerful penetration to the of Russia yet, is said in the report.

According to the forecast of as per the results of this year the sales#039; volume of the Chinese cars totals no more 70 000 units and only in 2009 it the level of 100 000 cars, though level has been forecasted for year. However, one should not about the strong pressure of the Chinese market that result not only in the rapid and in competitiveness improvement of the Chinese but will compel China#039;s industry to look for the entries to the markets.

So, Russia is the most convenient and direction here. Since the increase of the Chinese cars#039; at the Russian market can reach the level per year, and by 2012 total volume of realization attain the mark of 380 000-400 000 per year.

First of all, the … threatens the Russian players, AvtoVAZ in particular. recently, the Tolyatti auto was almost the monopolist with the niche of $8 000-10 000. China#039;s cars cost taking to account the relatively consumer and operating properties, and fact favorably differentiates from the Japanese, Korean, as the European cars.

If the analysts#039; of the expansion of China#039;s presence at auto market realize, the makes of Lada (the and Samara) will have to for a place in the sun. Obviously, the top makes #8212; Lada and Lada Priora #8212; compete with such as Hyundai, Ford and Kia, as as with the cost effective of the European and American auto As for the prospective AvtoVAZ#039;s developments, will obviously be more and will join the segment of $14 000, where the competition

However, as per the last data, the auto giant is preparing the new effective development #8212; the continues to design Lada Low The concept will be accomplished by the Obviously, this development replace the out-of-date classics.

If the manage to meet the mark of $7 000 with the appropriate level of the engineering and design solutions, will regain its status quo in the price segment of the Russian

Lifan Breez
Lifan Breez
Lifan Breez
Lifan Breez
Lifan Breez
Lifan Breez
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