Construction of the new Haval plant is based on an investment contract. The new plant, which is scheduled to start production in 2022, Haval is expected to increase localization of its cars.
The plant is located in Tula region, and its production should be enough to produce engines for more than 90% of the Haval cars sold in Russia.
Investment in the project is estimated to be about US$ 55 million (4 billion Rubles). Planned annual production capacity is 80K engines.
PSR Analysis: This event is an example of the strategy to develop relationships between the Russian government and large international OEMs. Large car makers are allowed to sell their product in Russian market while they bring production capacities (and technologies) into the country. PSR
Maxim Sakov, Market Consultant – Russia Operations for Power Systems Research
