Chery to partner with TagAZ for Russia market

Shanghai, August 4 (Gasgoo.com) After parting company with its former assembly partner Avtotor, Chinese carmaker Chery Auto has found a new partner, TagAZ, in Russia to assemble Chery vehicles for the Russian market and expects to sell at least 37,000 units in Russia this year, reported China Business New today.

Chery production at Avtotor was closed earlier this year, which significantly reduced the sales of Chery vehicles in Russia. Now the new partnership with TagAZ is expected to boost Chery's Russia sales in the second half to make up for its sales losses and equal last year's sales of 37,000 units by the end of this year. Chery is the biggest seller of Chinese vehicles in Russia.   

Sources from Chery said that the company has reached a deal with Russia's Avtotor for assembling Chery cars for the Russian market, and the TagAZ facility will start this month to assemble three Chery models -- Chery Cowin, Chery A5 and Chery Tiggo. Currently, TagAZ is Chery's only one assembly partner in Russia.

Under the partnership deal, the TagAZ-assembled Chery Cowin and Chery A5 vehicles will be sold through TagAZ's network, while the TagAZ-assembled Giggo cars will be sold by Chery's subsidiary in Russia.

The Chery cars to be assembled in Russia will be based on auto parts provided by Chery, and based on the KD (knockdown kits) assemblage, Chery will expand its cooperation with TagAZ for further growth in Russia. And its local sourcing of auto parts will follow Russia's related requirements.