BMW plans to build a new factory in Russia

BMW plans to build a new factory in Russia


 

Autostat.- BMW is getting ready to sign a SPIC, in accordance with which, a factory will be built in Russia, under very favourable conditions in terms of logistics location.

The company plans to construct the plant at the SEZ in the town of Khrabrovo in Kaliningrad region. First of all, the enterprise will be located at a very convenient place in terms of logistics. The equipment and assembly components will be supplied through maritime transport. Secondly, the manufacturers in the SEZ are eligible for certain financial benefits for the first six years of their operations.

The planned production capacity of the facility is 35,000 automobiles per year, which is consistent with the sales volume of BMW in Russia last year. The construction of the plant will cost between $270 million and 290 million, according to the calculations of the analysts. The details of the SPIC will be announced following the signature of the document.

As one may remember, the German car manufacturer has been thinking over plans to establish a factory in Russia since 2013. BMW automobiles are currently manufactured at the Avtotor plant in Kaliningrad, where 3, 5 and 7 sedan series are produced, along with all crossover lines available in the country.

Russian BMW dealers have sold 13,085 vehicles within the first four months of 2019, which indicates a 20% year-on-year rise. The Bavarian brand has become the leader of the premium segment, as a result of this performance.

The continuous growth of the brand in the Russian market is promoted above all by the youngest vehicle range in the premium segment, according to the general director of BMW Group Russia: Stefan Teuchert. “We have completely updated the BMW X line, where the key models in the Russian market belong to. The pricing also has a big role” – Teuchert stated.

Tags: Kaliningrad, SPIC