AutoBeta(AutoBeta.net)04/05 Report--

On April 3, local time, Daimler's Mercedes-Benz assembly plant in Russia was officially inaugurated. Several senior Russian and German officials attended the opening ceremony, while Russian President Vladimir Putin appeared at the opening ceremony. This also shows that Russia attaches importance to the Daimler plant, which is also regarded as a "rare" overseas investment in the Russian automobile industry.

The plant, located about 40 kilometers northwest of Moscow, with an investment of more than 250 million euros (US $281 million), is expected to create more than 1000 jobs and produce Mercedes-Benz cars and SUV models for the region, including the E-Class, GLC, GLE and GLS.

"the Russian car market remains the main market for German automakers, and the opening of Mercedes-Benz's first plant in Russia is a milestone and commitment in Russia," said the German Federal Minister of Economic Affairs and Energy. "

Russia's luxury car market is doing better than ordinary models, mainly because most wealthy Russians invest their money in consumer durables in consideration of currency depreciation. BMW, Mercedes-Benz's main competitor, assembles cars and SUV in Russia in partnership with local manufacturer Avtotor, while Audi and SUV are produced at Volkswagen's Kalu processing plant in Russia.

Russia was previously thought to be able to overtake Germany to become Europe's largest single car market, but it has been affected by falling oil prices, currency depreciation and the economic downturn caused by Western sanctions on Ukraine. Russia has been mediocre, although Russia is still one of Mercedes-Benz's largest markets in Europe.

The Russian auto market also showed a recovery in 2017, with annual car sales of 1595737 units, an year-on-year increase of 11.9%, the first year-on-year increase in nearly five years, compared with 1.8 million for the whole of last year. Chinese car companies have sold well in Russia, including Lifan, Chery and Geely. Recently, the Russian economy has gradually improved and the car market is rebounding. Mercedes-Benz is not the only car market in Russia. China's Great Wall also has plans to build factories in Russia.

Great Wall said it would start manufacturing operations in Russia's Tula region in the first half of 2019. Great Wall's $500 million plant in Russia is part of the company's plan to expand its global footprint. "since our first car went abroad 20 years ago, this is the company's biggest step in the overseas market," said Wang Shihui, general manager of Great Wall Automobile International Market. "

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