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September 30, 2020

Great Wall doubles investment in its Russian plant

Great Wall Motors this week announced plans to invest CNY3.7bn (US$542m) to upgrade its vehicle production operations in the Russian city of Tula, located 200km (120 miles) south of Moscow.

By bcusack

Great Wall Motors this week announced plans to invest CNY3.7bn (US$542m) to upgrade its vehicle production operations in the Russian city of Tula, located 200km (120 miles) south of Moscow.

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According to reports in China, the investment was made as part of a programme launched by the Russian ministry of trade and industry designed to attract investments from large corporations in return for tax incentives and other benefits. Great Wall was said to be the first Chinese vehicle manufacturer to sign up to this deal.

The Tula plant was only completed in June 2019 following investment of US$500m, becoming the automaker's first wholly owned overseas vehicle plant.

The facility has an annual production capacity of 150,000 units and currently produces SUV models including the Haval F7 and the Haval H9. 

The company said the additional funds would be spent on improving manufacturing capabilities, including localising production of core components such as engines, transmissions and vehicle control systems.

Russian trade and industry minister Denis Manturov said higher localisation would help Great Wall Motors become more competitive in Russia.

Speaking at the Beijing International Automotive Exhibition, Tony Guang Sun, vice general manager of international marketing at Great Wall, told reporters "going global is an inevitable trend for Chinese brands". 

He confirmed the automaker had sold some 700,000 vehicles overseas since 1998 and now had a network of around 500 dealerships in over 60 countries and regions worldwide. It is targeting 70,000 overseas sales this year.

Sun suggested the biggest concern of its overseas customers is no longer "product quality, but how long we will be there", adding the company has moved to reassure overseas customers through localising manufacturing and establishing aftersales networks.

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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