Chery Motors, a joint venture between Chinese automaker Chery Automobile and Russia’s Transervis based in Russia’s Novosibirsk Region, has filed an application with Russia’s economic development and trade ministry for an industrial assembly status for its production facilities in the country, Russian business daily Vedomosti reported on Monday, citing an unidentified official with the Russian government.
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A Prime-Tass news agency report noted that the industrial assembly status either eliminates or reduces import duties on auto components from 15% to 3% for facilities with annual output of at least 25,000 vehicles.
The joint venture plans to produce at least 25,000 cars per year, Chery Motors’ general director Gennady Sidnivets told Vedomosti.
Chery Motors is seeking industrial assembly status for a period of eight years for four of its models, Chery A15 (Amulet), B11, T11 (Tiggo) and A21, the official said.
Meanwhile, lower import duties would allow Chery Motors to sell their cars 15% cheaper, industry observers said.
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By GlobalDataTranservis, or Transervice, and Chery Automobile signed an agreement to jointly build a US$30m assembly plant in the town of Koltsovo in Russia’s Novosibirsk region in November 2005.
