Chinese automakers denied access to Russian market

Shanghai. September 19 (Gasgoo.com) No Chinese automakers have obtained approval from Russian government to set up assembly plant in Russia, state media Shanghai Securities News reported today.

Russian government has made September 15 the last day to approve foreign automakers' application to set up automobile assembly plants in Russia.

Prior to this deadline, European, U.S. and Korea automakers have secure  USD1.7 bln deals on automobile assembly plants in Russia. But no Chinese automakers have won such approvals from Russian government.

General Motors has signed a deal the Russian Ministry of Economy to start USD150 mln assembly plant near St Petersburg, which will start to assemble 25,000 vehicles next year.

Fiat Group has signed a deal with a SeverstalAuto to produce Fiat cars, with both sides holding 50 percent stake. The joint venture will be able produce 50,000 vehicles annually.

Russian government also approved automobile assembly plants with Korean and Japanese automakers, Ssangyang, Hyundai and Mitsubishi.

"All major automakers in the United States, Europe and Japanand Korea have entered Russian's assembly market except Chinese automakers," said Zhu Jingcheng, president of Siber Car Exports Company in Beijing.

Chinese automakers, Great Wall, Geely, Zhongxing, Beijing Auto all have been denied access to Russian market, Shanghai Securities News reported.

Chery is the only Chinese automaker that has an assembly plant in Russia, but Russian automaker are petitioning to the government to take back Chery's license, the report said.