Shanghai, June 24 (Gasgoo.com) Great Wall Motor Co, China's largest manufacturer of sports utility vehicles (SUV) and pick-up trucks, said it only sold 14 vehicles in Russia so far this year, Xinhua reports on Wednesday.
Zhang Xinguang, general manager of Great Wall Motor's Russia unit, attributed a lack of sales to tough industry protectionist measures introduced in the country. Since last November the Russia government began to levy 15 percent import tax on complete vehicles and no less than 5,000 euros (US$7,007) on each imported car body part.
"As most of Great Wall Motor's products are assembled in Russia in semi-knocked down kit forms, we were inevitably affected by the new tax policy," said Zhang.
A slowing consumer demand and Russian ruble devaluation also account for the decrease, Zhang added, saying the company is contemplating plans to export completed knocked down kits to Russia to escape regulatory hurdles.
Late in 2008 Great Wall Motor also dissolved a joint venture project with Tatarstan Property Authority in Russia "due to the long-awaited tax concessions by the Russian government in the special economic zone was not approved".
Great Wall Motor has become the largest Chinese brand in the Russian market since it entered the country in 2004. Last year it sold 14,000 vehicles in Russia.
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