SOK has announced that it plans a joint venture with a local partner to make cars in China. SOK is the third largest Russian car manufacturer and the first to announce manufacturing plans for China.
SOK has released few details but says that it is planning to develop a low cost car under the price of 80,000 yuan ($9,600) and targeted at the rising numbers of urban middle classes.
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SOK is sending a team to more than twenty cities in China to evaluate demand prospects and undertake market testing.
SOK is planning to invest $200 million in the venture.
China’s car market is estimated at around a million units per annum currently, but the country’s 1.3 billion population gives it huge growth potential.
