Ex BMW Auto Plant In Russia Begins Production of Chinese Vehicles
Auto sales are now rebounding after months of decline
The Avtotor plant in Russia’s Kaliningrad has begun manufacturing Chinese commercial JMC vehicles, the company announced last week. Three models of the Chinese brand JMC have entered production at the plant, which previously assembled German BMW and South Korean Hyundai and Kia cars. JMC are from China’s Nanchang City in Jiangxi Province, in the Yangtze River region near to Shanghai.
“The Kaliningrad automaker Avtotor is cooperating with the Chinese company JMC in the production of high-tech commercial vehicles. The production of three models of the brand – the urban light trucks Carrying, and Conquer, and the Vigus pickup truck – has started,” the company announced.
Avtotor and JMC have agreed to phase in full-cycle manufacturing – which includes welding, painting, and assembly – and boost production capacity once the project proves cost-effective.
In January, the Russian carmaker began producing China’s Kaiyi cars and in April announced the launch of the BAIC and SWM assembly – both also Chinese.
Chinese brands have become major players on the Russian car market, filling the void left by Western firms and also reflecting China’s growing importance to the country’s economy.
The popularity of Chinese automobiles in Russia has been rising amid the exodus of European, American, Japanese, and South Korean brands. Many automakers found it difficult to continue operations in the country due to logistical disruptions resulting from Western sanctions, particularly after deliveries of cars and spare parts to Russia were halted.
Avtotor was founded in 1994 in Kaliningrad and was the first plant in Russia to assemble foreign cars. It has a production capacity of 250,000 cars per year.
Russia’s auto sales had a terrible 2022 as factories were silent as many, but not all, Western auto manufacturers pulled out of the country. Sales dropped by 63.1% from January 2022 to January 2023.
However, with new auto manufacturing partners coming into the Russian auto market, previously Western-invested factories have been re-tooled and are now increasing production. A sales rebound is now taking place, with Russian sales increasing 63% in July 2023 compared to July 2022, according to the Association of European Manufacturers in Russia.
Pre-sanctions, the Russian auto market in general was manufacturing about 1.6 million vehicles per annum and was the seventh largest global market for automotive brands.
Source: Russia Today
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