The Chinese auto industry enters Russia instead of Mercedes
The new owner of the former Mercedes-Benz plant in the Moscow region, the Avtodom dealer, will launch production of Chinese premium cars there.
Izvestia reports this, a PolitNavigator correspondent reports, citing its sources in the dealer business.
The general director of the Avtosmart company (a subsidiary of Avtodom for the vehicle subscription service) Maxim Shishko said the day before that they will start assembling Chinese cars at the plant.
“Our main task is to make a full-fledged replacement for Mercedes, BMW, Audi, those familiar brands that sold 150-200 thousand cars a year. This segment has high potential,” said Shishko.
At the same time, the publication’s interlocutors indicate that besides Hongqi, there are no other notable brands in the premium segment in China.
“According to one of the sources, crossovers may be the first to go into production. One of them, HS5, has already been certified in Russia at the end of 2022. Then specialized media reported about the brand’s plans to begin importing the model to our country. The flagship model, the H9 sedan, also received vehicle type approval,” the material notes.
Another source clarified that negotiations about the potential launch of production are being conducted not only with Hongqi, but also with its parent state holding FAW (First Automobile Works), the oldest Chinese concern. According to him, if the brand’s cars are assembled in the Moscow region, it will probably be together with other FAW models.
At the same time, the Avtodom press service declined to comment.
“In China, Hongqi is a well-known brand and is part of the FAW group. In 2022, 310 thousand cars were sold, the sales increase was 3% compared to the previous year. By 2025, they aim to sell 10% of their cars outside of China, and by 2030 - already 25%.
The company plans to produce 1 million units by 2025, half of which should be electric,” said Tatyana Kofanova, head of the group for working with automotive companies at Business Solutions and Technologies (formerly Deloitte).
According to her, the launch of Russian production fits into the brand’s strategy to enter foreign markets. She believes that at the first stage, obviously, it will be a large-unit assembly.
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