Great Potential of China Auto Builders in Russian Market
28 July 2011
www.chinabuses.org: On 19 July 2011, Beijing Automotive Works Co., Ltd. and Beijing Automotive International Trade Company, both the subsidiaries of Beijing Automotive Industry Holding Co., Ltd. have cooperated with Russian BMC to set up the joint venture for the manufacturing, assembly and sales of commercial vehicles in Russia.
The new joint venture refers to the total investment of about 176 million USD and the planned annual output of 60000 units. From 2012 to 2015, the annual production will come 20000 units by CKD (completely knocked down ). Both parties hold 50% shares of the new company.
Due to the jumping price of the energy over the world, Russian government makes related measures to stimulate the economy. In the recent four or five years, it is the market with the fastest growth in Russia, which arouses the market grabbing of auto companies from Europe, America and Japan. While China auto builders mainly compete in the low end market in Russia. It seems that China auto producers have more opportunity in the commercial vehicle markets, in particular, light commercial vehicles, because of the great competition against American, European and Japanese auto builders over the second hand cars.
Beiqi Foton Motor Co., Ltd. has been one of the largest commercial vehicle producers over the world, with great potential in the development of medium or light commercial vehicles.
The new joint venture refers to the total investment of about 176 million USD and the planned annual output of 60000 units. From 2012 to 2015, the annual production will come 20000 units by CKD (completely knocked down ). Both parties hold 50% shares of the new company.
Due to the jumping price of the energy over the world, Russian government makes related measures to stimulate the economy. In the recent four or five years, it is the market with the fastest growth in Russia, which arouses the market grabbing of auto companies from Europe, America and Japan. While China auto builders mainly compete in the low end market in Russia. It seems that China auto producers have more opportunity in the commercial vehicle markets, in particular, light commercial vehicles, because of the great competition against American, European and Japanese auto builders over the second hand cars.
Beiqi Foton Motor Co., Ltd. has been one of the largest commercial vehicle producers over the world, with great potential in the development of medium or light commercial vehicles.
Source : www.chinabuses.org
Editor : Andrea
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