On April 4, Kaliningrad Avtotor began production of Chinese passenger cars BAIC (Beijing Automotive Industry Holding Co.), the company’s press service reported.
We are talking about the mode of industrial (SKD) assembly “on the basis of a welded and painted body with partial localization” of first-level components (components and modules of the machine ready for installation. – Vedomosti).
BAIC is one of the oldest automakers in China, founded in 1958. It is one of the top 10 automakers in China. Its cargo division, Foton, is cooperating with the GAZ group on the Valdai Next medium-duty van project. In particular, a cabin from the Chinese Foton Ollin CTS van is installed on a commercial vehicle. In addition, in January – February 2023, the Foton Auman truck tractor ranked third in sales in Russia (257 units), according to Avtostat info.
According to Avtotor, two models of the Chinese brand will be produced simultaneously on the same conveyor line: a five-seater BAIC X35 crossover and a sedan with a naturally aspirated 1.5-liter BAIC U5 plus engine. “For their production, deliveries of components from BAIC enterprises to China have been organized,” the release says.
It is also noted that the parties are working on a “phased plan for technical and technological cooperation for the localization of components.” Batteries, windows, bumpers, washer reservoirs, wheels and tires, seats, exhaust systems, etc. will be localized. From 2024, it is planned to launch a full-cycle production with welding and painting of bodies, followed by the localization of paintwork materials and stamping.
Avtotor expects that sales of the BAIC X35 and BAIC U5 plus will begin in the second quarter of 2023. Prices for them will start from 1.7 million rubles, follows from a statement by Denis Pak, president of Avtotor Holding. His words were quoted by TASS.
The official distributor of BAIC in Russia is BAIK RUS, which has already begun to form a dealer network. By the end of 2023, five more models of the brand are planned to enter the Russian market, one of which is an electric car.
When assembling electric vehicles based on Avtotor, Russian components will be used: electric motors, gearboxes, inverters, control systems, etc. The company will start producing them next year.
BAIC is the second Chinese brand to be assembled at the Kaliningrad plant. At the end of January, Avtotor announced the start of industrial assembly of Kaiyi cars (51% of the company’s shares belong to Sichuan province, the remaining 49% belongs to Chery Automobile). The first Kaiyi model to hit the assembly line in Kaliningrad was the mid-size E5 sedan.
After the start of the SVO in Ukraine and the subsequent sanctions, most Western, Korean and Japanese automakers left Russia or suspended the production of cars at their facilities in the Russian Federation. Against this backdrop, Chinese car companies stepped up. Vedomosti wrote about the negotiations between Avtotor and BAIC on November 18, 2022.
Until 2022, Avtotor produced German BMW models, the assembly of which was suspended last spring, as well as South Korean Kia and Hyundai. The production of Korean stamps at the plant was discontinued in early October.
Sergey Burgazliev, an independent consultant on the automotive industry, noted that Avtotor is now interested in finding new partners. “This is the right decision, taking into account the market vacated after the departure of European companies,” the expert added. Burgazliev believes that BAIC has “a good line of SUVs and crossovers.”
Burgazliev added that Avtotor will continue to expand production, for example, through the segment of light commercial vehicles (LCV).