Great Wall Motor’s subsidiary signs special investment contract with Russian government
Shanghai (Gasgoo)- The Ministry of Industry and Trade of the Russian Federation signed on September 25 a special investment contract (SPIC) with Haval Russia Automotive Manufacturing Co., Ltd.—a subsidiary of the Chinese carmaker Great Wall Motor (GWM), which produces Haval-branded SUVs at a car plant in Tula, Russia.
(Great Wall Motor's Tula plant; photo source: Great Wall Motor)
The signing of the SPIC means that GWM will be allowed to operate businesses in Russia using the same preferential policies as that of the other foreign invested enterprises in this country in a more open and fairer market environment.
Signed between investors and the Russian Government, the SPIC is an agreement through which the state government can provide investors with tax and non-tax incentives as well as facilitated access to governmental procurement projects.
Under the SPIC agreement, GWM is expected to invest 42.4 billion rubles (3.7 billion yuan) in the construction of a vehicle manufacturing plant with powerful capability of localizing core auto parts, including engines, transmissions, electronic control modules and vehicle control system.
“The high level of localization increases the competitiveness of the Chinese manufacturer in the Russian market. The implementation of the SPIC guarantees the long-term development of the company in Russia in the field of localization of key components, assemblies and systems,” the press service of the Ministry of Industry and Trade quotes the head of the department Denis Manturov.
(Great Wall Motor's Tula plant starting production; photo source: Great Wall Motor)
Located at the Uzlovaya industrial park in the Tula region, GWM's Tula plant is the first full-cycle complete vehicle manufacturing factory built by a Chinese car maker. The planned production capacity of the plant is 150,000 units per year, 80,000 units of which are set for the first phase.
Since the plant starting production in June 2019, there have been such models as the Haval F7, the Haval F7x and the Haval H9 coming off the assembly line there. According to GWM, the Jan.-Aug. sales of Haval-branded vehicles surged 75% year on year in Russia.
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