Geely may set aside agents and go it alone in Russia

Shanghai August 18 (Gasgoo.com) After an inspiring acquisition of Volvo cars from Ford Motor, Li Shufu is now having a bad time.

Geely King kong

Due to policy restrictions, high taxes and fees for importing cars to Russia, Geely will soon clear its inventory in the country, likely to withdraw from the Russian market after October this year, media reported.

According to statistics published on the Russian automotive website, Geely sold only 13 vehicles in the local market in July.

Concerned about the dismal market, Geey has already sent a delegation to Russian to negotiate with its assembly plant, Derways that mainly manufactures Geely MK (King Kong) cars for the local market.

"The Russian market is very large, but its policies change too fast, so it is not wise to conduct sales through the agent in such a market in a long term,"  an industry expert said, "Geely should go it alone, " adding that with more power, the company can respond quickly to the changing market.