September 30, 2023 11:02 pm

BMW’s former Russian plant now manufacturing Chinese cars, reports RT Business News.

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The Avtotor plant in Kaliningrad, Russia, has announced the start of manufacturing Chinese commercial vehicles from the brand JMC. The plant, which has previously assembled cars from German BMW and South Korean Hyundai and Kia, has begun production of three models from JMC. These models include the compact urban commercial vehicle Carrying, the universal commercial vehicle Conquer, and the Vigus pickup truck.

The collaboration between Avtotor and JMC also includes plans for full-cycle manufacturing. This means that Avtotor will handle the entire production process, including welding, painting, and assembly. If the project proves to be cost-effective, the companies will increase production capacity.

This is not the first time that Avtotor has partnered with a Chinese automaker. In January, the Russian carmaker started producing Chinese Kaiyi cars, and in April, it announced the launch of the BAIC and SWM assembly lines, both of which are also Chinese brands.

Chinese automakers have become major players in the Russian car market, filling the void left by Western firms. They also reflect China’s growing importance to the Russian economy. With the exodus of European, American, Japanese, and South Korean brands from the Russian market, Chinese brands have gained popularity. This is partly due to logistical disruptions caused by Western sanctions, which have made it difficult for foreign automakers to continue operating in Russia. Deliveries of cars and spare parts to Russia have been halted as a result.

Avtotor, founded in 1994 in Kaliningrad, was the first plant in Russia to assemble foreign cars. With an annual production capacity of 250,000 cars, it has played a significant role in the development of the Russian automotive industry.

The collaboration between Avtotor and JMC is a strategic move that allows both companies to benefit from each other’s strengths. Avtotor brings its experience in manufacturing and assembly, while JMC provides its expertise in producing high-tech commercial vehicles. By working together, they can meet the growing demand for commercial vehicles in Russia and strengthen their positions in the market.

This partnership also highlights the importance of the Chinese market for the Russian economy. As Western sanctions continue to impact trade relations between Russia and the West, China has emerged as a vital economic partner. Chinese investments and collaborations in various industries, including automotive, contribute significantly to Russia’s economic growth.

In conclusion, JMC and Avtotor have embarked on a collaboration to manufacture Chinese commercial vehicles in the Avtotor plant in Kaliningrad, Russia. This partnership allows both companies to tap into the growing demand for commercial vehicles in Russia and leverage each other’s strengths. As Chinese brands gain popularity in the Russian market, this collaboration reflects the shifting dynamics in the global automotive industry and highlights China’s growing importance to the Russian economy.

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Original Source: BMW’s former Russian plant now manufacturing Chinese cars, reports RT Business News.

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