GAC may build plants in Russia and Iran, report says
GAC Automobile Group Co., eager to expand overseas, may build plants in Russia and Iran to assemble vehicles with kits imported from China, according to a Chinese media report.
The state-owned automaker has studied the Russian market for a year and a half and is now looking for a local partner to construct the plant, reported Internet Info Agency, a Beijing-based website, quoting GAC's general manager, Wu Song.
After finding a partner, GAC wants to build a plant in Russia that initially would produce 50,000 vehicles a year, Wu was quoted as saying.
Russia and Iran are key export markets for Chinese automakers. But when Russia's economy tanked, sales of Chinese brands there tumbled nearly 53 percent in 2015 to 39,085 vehicles.
Among Chinese carmakers, Chery Automobile Co. is the largest exporter to Iran, with sales of roughly 40,000 vehicles in 2015.
Wu did not disclose details about GAC's proposed assembly plant in Iran, or the models to be produced there. However, it would seem likely that the facility would assemble cars for the Trumpchi brand, which GAC launched in 2010.
Last year, Trumpchi's global sales surged 45 percent to 195,134 vehicles -- a figure that included 1,455 vehicles shipped overseas. GAC's export markets include the United Arab Emirates, Kuwait, Lebanon and Qatar.
While GAC appears to be focused on Russia and Iran, the company also has shown some interest in the U.S. market.
GAC showcased the Trumpchi GS4 crossover at the Detroit auto show in 2015 and 2016. At the Shanghai auto show in April, Wu told the press that the company planned to launch sales of the GS4 in the United States in 2017.
But he did not disclose any details and there's no evidence that GAC has recruited dealers in the United States.
GAC, headquartered in the south China city of Guangzhou, has joint ventures in China with Toyota Motor Corp., Honda Motor Co. and Fiat Chrysler.
After finding a partner, GAC wants to build a plant in Russia that initially would produce 50,000 vehicles a year, Wu was quoted as saying.
Russia and Iran are key export markets for Chinese automakers. But when Russia's economy tanked, sales of Chinese brands there tumbled nearly 53 percent in 2015 to 39,085 vehicles.
Among Chinese carmakers, Chery Automobile Co. is the largest exporter to Iran, with sales of roughly 40,000 vehicles in 2015.
Wu did not disclose details about GAC's proposed assembly plant in Iran, or the models to be produced there. However, it would seem likely that the facility would assemble cars for the Trumpchi brand, which GAC launched in 2010.
Last year, Trumpchi's global sales surged 45 percent to 195,134 vehicles -- a figure that included 1,455 vehicles shipped overseas. GAC's export markets include the United Arab Emirates, Kuwait, Lebanon and Qatar.
While GAC appears to be focused on Russia and Iran, the company also has shown some interest in the U.S. market.
GAC showcased the Trumpchi GS4 crossover at the Detroit auto show in 2015 and 2016. At the Shanghai auto show in April, Wu told the press that the company planned to launch sales of the GS4 in the United States in 2017.
But he did not disclose any details and there's no evidence that GAC has recruited dealers in the United States.
GAC, headquartered in the south China city of Guangzhou, has joint ventures in China with Toyota Motor Corp., Honda Motor Co. and Fiat Chrysler.
