Chery signs deal with Russian company
Updated: 2006-02-09 09:22
The Chinese automobile manufacturer Chery Automotive Co. (CAC) has signed a
partnership agreement with the Russian-based Avtotor to assemble cars in Russia.
Details on the joint-venture are still under discussion, reports Wednesday's
Economic Information Daily, quoting a manager from Chery.
Russian media sources confirmed that the news and said Chery also plans to
establish a factory with Avtotor if Chery cars are sold successfully in Russia.
Chery estimates that the investment in the new factory will total 200 million
Besides Chery, Avtotor also became the partner of Nanjing Yuejin and
Zhongxing, two Chinese truck and SUV manufacturers, in July 2005.
Based in East China's Anhui Province, Chery was ranked number one in China
for car sales last year, with total sales hitting 185,000 units, 118 percent
more than the previous year.
Sales of China's Chery automobiles took a huge leap in January as 22,505 of
the small cars were sold, an increase of 110 percent compared to the same month
last year, according to the company's sales department.
The QQ, the company's flagship auto, saw sales of 12,865 in January, to lead
China's small car market. Another of the company's models, the Qiyun, sold
7,575, more than two and half times that of the same period last year.
Chery attained its 2005 sales goal with 189,000 units sold. The company has
now become China's sixth largest car maker.
According to the company, Chery is planning to put six new models on the
market in 2006. Insiders say the company is expected sell 281,000 auto this
As one of China's leading domestic auto makers, the Anhui-based Chery has won
recognition for its technological innovation.
In 2005, China's vehicle output grew 12.56 percent to 5.71 million units over
the previous year. Sales of domestically-made vehicles grew 13.54 percent to
5.76 million units, according to statistics from the China Association of