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Business / Auto China

China's Lifan starts construction of car plant in Russia

(Xinhua) Updated: 2015-07-18 14:18

LIPETSK - Chinese motorcycle and automobile manufacturer Lifan on Thursday started construction of a production plant in central Russia's Lipetsk.

The plant is expected to start production in 2017 with an annual capacity of 60,000 cars, Vice President of Lifan Industry Groups Mou Gang said at the ground-breaking ceremony.

Located in Lipetsk's special economic zone, the car plant, once completed, will become the sixth overseas plant of Lifan, a privately-owned Chinese company headquartered in southwest China's Chongqing Municipality.

"We envisages expanding on the Russian market during the time when it is shrinking, as any economy has its periods of ups and downs," Mou told Xinhua, adding that Lifan sees all existing car makers in the Russia market as partners rather than competitors.

Ivan Koshelev, director-general of the special economic zone, said the zone's successful development in recent years proved that Western sanctions did not scare foreign investors off.

"Many more Chinese companies would start their business in Lipetsk," Koshelev told Xinhua. "Investors come here not for profit only. They just enjoy working in our environment."

The Chinese car manufacturer, which entered the Russian market in 2007, has invested $300 million in its Lipetsk branch, which will also be Lifan's first car plant with a complete assembly cycle in Russia.

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