Sollers will increase production in Vladivostok

Sollers will increase production in Vladivostok

Vedomosti – A Sollers representative has told Vedomosti newspaper that the production number of Mazda, Ssangyong and Toyota automobiles will reach 77,000 this year, following a 13% increase, within the frame of the joint project in Vladivostok.

The Russian government is subsidising railway transport, in order to promote car production in the Far East region of the country. 4.9 billion rubles had been allocated for this purpose from the federal budget in 2013. According to the Ministry of Industry and Commerce data, 64,392 vehicles have been manufactured in Vladivostok, to be transported to the western part of the country, within the scope of the subsidies. However, the amount allocated for the same purpose within the 2014 budget has dropped by 40%: 3 billion rubles. 40,000 automobiles are planned to be transported with this budget. The Sollers representative, on the other hand, has stated that the company has not asked for any increase in the amount. The company intends to work towards increasing the sales in Far East and Siberia regions, rather than transporting all the vehicles manufactured to western Russia.

VTB Kapital analyst Vladimir Besplaov is of the opinion that despite the relatively low demand for automobiles in the Far East, Siberia may become a profitable sales zone for Sollers and its partners. According to Avtostat data, 13,030 new cars and light commercial vehicles have been sold in Far East Federal Region in 2013 (-20.2%). The figure goes up to 139,840 vehicles in Siberia Federal Region (-10.2%).

Works have started towards the establishment of a new special economic zone (SEZ) in Vladivostok, a short while ago. The new SEZ will not only lighten the tax burden on Sollers, but also create the opportunity to attract Japanese and Korean supply industry manufacturers to the region.