BMW plans to start producing X5 and X6 sport utility vehicles (SUVs) at the Avtotor plant in the Russian city of Kaliningrad in July.

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Christian Kremer, president of BMW Group Russia, confirmed the move in an interview with Russian TV station Vesti 24.


Kremer told journalists earlier this year that localising assembly on the X5 and X6 could bring prices down by as much as 10% [a massively depreciated rouble has raised prices on imports from the US and the eurozone].


“The competition in the premium segment is tight, and localizing will give us a competitive advantage,” Kremer said.


BMW currently imports the X5 and X6 SUVs from the US and has raised prices on all imports by 11 percent because of the rouble devaluation and increased import tariffs.


BMW already assembles the 3-series and 5-series in Kaliningrad, as well as the X3 SUV.

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