BYD making F3 sedan in Russia with local partner

Shanghai, July 7 (Gasgoo.com) Chinese automaker BYD Co. has started assembling its cars in Russia, the company's local partner TagAZ announced yesterday.

TagAZ said it has completed assembly of its first BYD F3 sedan at its plant in Taganrog, southern Russia. Mass production will begin this summer, with sales in Russia to be handled by the TagAZ dealer network.

The BYD F3 sedan was China's best-selling car in 2009 and the first few months this year. The first F3 model to be produced by TagAZ will be the entry-level version, fitted with a Mitsubishi-sourced 1.5-liter engine and a five-speed manual gearbox.

BYD may build 10,000 cars at TagAZ by the end of the year and replace South Korea's Hyundai Motor as the Russian carmaker's main partner, Bloomberg reported today, citing TagAZ workers. TagAZ makes about 40% of the cars Hyundai sells in Russia.

As Hyundai plans to end its assembly contract with TagAZ and transfer local production to its new plant in Russia, the BYD contract will help TagAZ make up the shortfall caused by the move of Hyundai.