At the Russian-Chinese forum "ROSTKI" in Kazan, the Chinese company FAW announced that it is exploring the possibility of creating its own automobile production in Russia. Tatarstan is of interest in this regard as a site for a new Chinese car plant.
According to KazanFirst, Li Yongjun, General Director of China FAW in Russia and Eastern Europe, sees the Volga region as a whole as a priority region for localizing production in Russia. And here's why.
As we all know, the growing recycling fee and the Central Bank's constant increase in interest rates have led to serious problems for Russian consumers, which to some extent has limited demand. We are thinking about finding partners for local assembly of our cars, and the Volga region is one of the priority regions in this regard.
The head of Tatarstan, Rustam Minnikhanov, in turn, showed active interest in partnering with China. He noted that he had been to FAW factories, and this is a "very modern production".
Today, when Europe and Japan have turned away from us and opened the way for you, you need to create your own production facilities. There will be no such moment again. I generally do not understand how you can give away your sales markets. [...] We have KAMAZ, which works well with China. We have Sollers, which also works. But we need to look deeper. We are ready to consider [production of] special equipment and cars. We understand something about this. I think Tatarstan could be interesting for you.
Minnikhanov promised to give instructions to the government of the republic to develop cooperation after meeting with Chinese business.
FAW
FAW is a Chinese company that has been producing cars for over 60 years. It produces, in particular, cars of the Hongqi, Besturn, Oley brands and Jiefang LCV and HCV trucks, as well as Volkswagen CC, Audi A4, A6, Q5 and Q3, Mazda, Toyota Prius cars and parts for them, plus LC200 and RAV4 SUVs.
In the ranking of the 500 largest global companies according to Fortune Global, FAW ranks 66th. It owns 28 subsidiaries with a stake of more than 50%, including FAW Volkswagen Automobile Co., Ltd and FAW Toyota motor Co., Ltd.
At the end of 2023, FAW sold almost 7 thousand FAW Bestune passenger cars in Russia. In 2024, FAW intends to increase sales and sell 20 thousand cars.
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