Honda has resumed talks with Russian authorities about building a car assembly plant, the economic development ministry’s department director Dmitry Levchenkov said on Monday.
“Talks resumed last year,” Levchenkov told the Prime news agency, adding the government was expected to offer privileged industry assembly rules to Honda.
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Honda sought to build the plant under old industry assembly regulations, under which the automakers were obliged to localise production by 30%.
Under the revised rules in force from February 2011, the localisation rate should be 60% with at least 300,000 cars produced a year.
Honda’s Russian sales are falling and analysts have said construction of an assembly plant could improve the situation.
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