Volkswagen (VOWG.DE) is in advanced talks with Russian carmaker Gaz (GAZA.RTS) to assemble vehicles under contract in Nizhny Novgorod, the Financial Times said on Wednesday.
Citing two people briefed with the talks, the newspaper said the carmakers are discussing a deal that could see Gaz assemble as many as 150,000 vehicles for Volkswagen each year.
If the talks succeed, Volkswagen would significantly increase its sales and market share as Russia's car market is bouncing back after the financial crisis, the FT said.
The talks have touched on cars and light commercial vehicles produced by Volkswagen's own brand and its unit Skoda, it said.
Volkswagen told the FT on Tuesday that it was looking to expand further in Russia.
Volkswagen and Gaz were not immediately reachable for comment.
