The launch of new plant with full production capabilities for BMW SUVs is planned for July 2021. According to Kaliningrad officials, the new plant is one of the most important investment projects in the regional processing industry. Autotor holding makes up a significant part of the regional production.
Officials said the enterprise is one of the largest employers and taxpayers in Kaliningrad region. Construction of the plant building is underway, and machinery installation will be started in January 2021. The first car is expected to be produced in July 2021.
It’s expected that new plant will add more than 2,000 workers, and production capacity will be more than 50,000 BMW cars per year. Models X4, X5, X6 and X7 will be made there. Up to 15,000 bodies made in the plant will be exported around the world. Read The Article
PSR Analysis: It looks like that international passenger car makers see good potential for the Russian market. German automakers BMW and Mercedes have expanded their production capacities in the country, and Asian OEMs are doing the same–Hyundai plans to purchase the former GM plant in St Petersburg, and Haval added one shift in their production plant last month. However, US companies GM and Ford are leaving Russia. But there could be political reasons for these moves. PSR
Maxim Sakov is Market Consultant, Russia, for Power Systems Research
