Rus News Journal

The Chinese expansion extends?

It seems that does not pass day that new messages of presence expansion in the Russian automobile market of the companies from China did not come. Such data, in particular, are regularly published on a site www.china-motors.ru. Expansion concerns not only sales, but also productions in Russia of the cars leading the origin from Heavenly Empire of empire.

according to company “Inkom-car“ which is the official distributor of some the Chinese automobile factories in the Russian Federation, in the near future presence of its “wards“ at Russia extends. In particular, at factory «Cars and motors of Ural Mountains» (Novouralsk, Sverdlovsk region) Is planed to begin assembly of two models.

one of them - sedan Geely Otaka which is belonging to the class “In“, second - off-road car ZX Landmark. It is planed that in Russia it will be implemented about 3,6 thousand all-terrain vehicles, and about 17 thousand passenger automobiles.

originally in Ural Mountains conveyor assembly will be led krupnouzlovaja, and within two years degree of localisation of production is supposed to be finished to 30 %. This digit will include welding of bodies, painting, and also equipment of cars by accumulators and tyres of the Russian production.

the total sum of investments in is valued approximately in $100 million Preliminary cost of car Geely Otaka constitutes $10-12,5 thousand, and ZX Landmark - in a $19,9-23 thousand band These digits do goods of the new joint venture not too perspective - at such price it is possible to find cars of the brands which have proved well enough.

Company Chongqing Lifan Industrial on car factory to the Circassian (it now manufactures off-road cars) plans to begin extension of passenger automobiles. For production sedan Lifan 520 (S-class) made on the basis of Citroen ZX Fukang is chosen. This year is planed to manufacture in Cherkessk about 5 thousand cars Lifan.

One more point where in the near future «the Chinese landing party» - Omsk will be landed. And here there will be an event which for Russia is (while?) Unique - organisation of the automobile joint venture at the defensive enterprise.

the Russian side in the new project is presented by the Omsk motor-building software (OMPO) to them. Baranova. Earlier it submitted to Minaviapromu of the USSR, and till now saved the status of the Federal state unitary enterprise (FGUP). The factory is known, as the producer of a check point for “Izhes“ and “Moskviches“, however it was, as spoke in Soviet period, “consumer goods“. The main goods of factory is much more hi-tech: turbo-prop and turbojet aero-engines. For lack of bookings OMPO, as well as many aviamotorostroiteli, was engaged in extension of motor-cultivators, household pumps and to that of similar “small things“. For defensive factory, already it is a lot of years actually balancing on the verge of bankruptcy, the solid contract on extension of cars is rather attractive. However, there is a question: how to organise the joint venture at “military“ factory?

However, this question is, seemingly, decided. Anyway, the regional authorities support this project. the head of department of the defensive industry, transport and communication of the ministry of the industry of the Omsk region Valery Los reported that within the next few days to Omsk there arrives delegation Chinese avtomobilestroitelnogo concern for negotiation with management OMPO.

However, the name of the potential partner while is not known. Any particular data, and heads of factory did not call it, and also. the chief deputy of general director OMPO Victor Sozin told: «Our overall aim - to manufacture machines which can compete not only with domestic, but also to foreign models which prepare in Russia. It will be possible to tell about financial conditions of cooperation something only after the termination of negotiations» . It is supposed that speech can go about assembly of passenger automobiles in quantity to 10 thousand pieces a year.

while it is a question of the Chinese expansion to Russia in the area of passenger automobiles and off-road cars. However the situation analysis in home market and in the automobile industry of China shows that in the near future it is possible to expect «the second direction of blow». This direction - utility trucks and buses (in China the automobile engineering of both these kinds is actuated in a general category “cargo vehicles“).

the Position in spheres of production of various kinds of motor-vehicles is not too steady is. According to informal (but also not refuted) to the data, company Iveco terminated relations with Changjiang Bus Group (Changzhou). Thus the share holding of joint venture on production of buses Iveco sold already to the former Chinese partners for the symbolical sum - 1$.

The matter is that Iveco has co-production of utility trucks with one Chinese company - Nanjing Automobile Group. According to the Chinese policy in sphere of the automobile industry, it is authorised to foreign companies to organise no more than two joint ventures with the Chinese producers passenger or freight (in this class as it was already told, are actuated also buses) cars. Therefore Iveco to be integrated with SAIC, it was necessary was to terminate cooperation either with Changjing Bus or with Nanjing Automobile. The Joint venture with Nanjing Automobile is profitable (unlike the joint venture with Changjing Bus), as decided business.

this “divorce“ allows Iveco to continue actively cooperation with Shanghai Automotive Industry Corp (SAIC) - the leading producer of cars in China. Iveco and SAIC already entered into the agreement on organisation of co-production of heavy auto trucks. Iveco it is ready to invest in the new joint venture of an order of 120 million euro. This contract expects now the coordination in the government of China.

if the transaction between Iveco and SAIC will be approved, partners plan to gain 67 % of shares of the producer of auto trucks Chongqing Hongyan Motor Co Ltd. It is supposed that the new joint venture can manufacture by 2008 about 40.000 auto trucks and 30.000 engines. According to the Chinese analyzers, for SAIC which now co-operates about General Motors and Volkswagen in production sphere “legkovushek“, the alliance with Iveco offers advantages and in the market of auto trucks.

it is remarkable that these agreements consist in a situation as which it is difficult to call favorable. According to statistics, the Chinese car industry has now a capability to effect annually to 750 thousand auto trucks. However internal demand for this goods constantly drops. Only for last year it was moderated by third is is caused by rise in prices for fuel and some changes in motor industry normative documents. Forecasts assert that by 2010 demand for utility trucks in China does not exceed 400 thousand units.

it is logical to assume that at least the part of “excess“ in the size of 350000 pieces garantirovanno arrives on foreign markets, including in a kind mashinokomplektov for assembly. And more than possibly that the market Russian will be one of these foreign markets.

actually, first signs already appeared - organisation of production of utility trucks of Chinese company BAIC in territory of the Ulyanovsk region means. However it only iceberg top.

in our market Chineses can press not only home producers (on behalf of GAZ). Cooperation with so high-power partner as Iveco, allows them to compete rigidly enough and to importers of cargo vehicles and buses.

conference which can determine the future of the Chinese motor-car manufacturers in Russia, passes in the autumn. However the slogan «Chineses go» already now can be disturbing enough both for the Russian autoindustrialists, and for their foreign colleagues.