Why does Russian auto industry look east?

Motors installed on Kia Rio and Hyundai Solaris / Creta are carrying from China. Half NEXT Gazelles is equipped with diesel engines produced in Beijing. On Kamaz faces bridges from the Middle Kingdom. The list can continue and continue. Our channel decided to look at the process of turning to the East.

The leading domestic cargo and commercial manufacturers, as it turns out, is closely connected with Chinese manufacturers of autocomponents and automakers. Forms of such cooperation are completely diverse: from licensed purchases before deliveries to conveyors. Why is such cooperation beneficial to both parties?

The most fully cooperation between the two auto industry — Russian and Chinese — it became covered early last year. It turned out that the dependence of the automotive plants in the Russian Federation, which receive components from the PRC, became critical for a number of enterprises due to the closure of industries in China due to the announced location, especially in the Uhanny district. At the end of January 2020, the Ministry of Industry and Trade of the Russian Federation was even forced to conduct a survey of domestic automakers on this topic. It turned out that the stocks of autocomponents and other components necessary for the rhythmic work of the nodes and details of the Chinese production would have enough for a month or two.

However, a serious problem was then recognized only on KamAZ. In Naberezhnye Chelny, the headquarters were forced to create a «operational response» headquarters, which if necessary, could adjust the produced model range, to conduct «preventive work» with suppliers and look for alternatives. However, after Quarantine was introduced in the Russian Federation, and the conveyors of domestic assembly automobile plants were stopped, the problem was removed by itself and quickly forgotten.

However, seven years ago, when the economic sanctions of the Western countries against the Russian Federation were introduced after the Crimea, it was argued that

With the advent of Coronavirus, «Moment of Truth» came. Now we were able to find out if the «Eastern Ruver» in the domestic motorway «, or he is still a fiction?

In fact, precedent with deliveries at the beginning of last year, allows us to conclude that «turn to the East» took place.

Two first attempts

Cooperation of Russian and Chinese auto industry some time ago tried to «start» from above. One of the attempt was made in 2010. Then during a visit to the PRC of the President of the Russian Federation, Dmitry Medvedev signed a Memorandum on the intentions of the GAZ Group’s cooperation with the largest Chinese truck manufacturer FAW.

The sides intended to create a joint venture, which will take place assembly models of FAW cargo technology at the facilities of the Ural plant. At that time, the car factor located in Miass was part of the GAZ Group. The model range and production should be determined during further negotiations.

The former president of the GAZ Group of the Swede Bo Anderson in one of the interviews recalled that the Chinese partner FAW offered to produce the entire range of heavy trucks in the Russian Federation. The Russian side needed to determine the balance between localization and imports. The GAZ and FAW group also had to open their dealerships in Russia and China for each other for mutual product promotion.

The gas planned to install on the part of the FAW trucks, the assembly of which would be carried out on the «Ural» auto industry, new on time Diesel engines produced by the Yaroslavl Motor Plant — a heavy diesel engine of the YAMZ-650 and medium diesel engines of the YAMZ-530 series. Recall that the first engine is collected under the Renault Trucks license, and the second is developed by gas in conjunction with Austrian AVL. Under his release, a new production building was built in Yaroslavl on a loan loan of 5.8 billion rubles. Project capacity of new engine production — 40-50 thousand motors per year. It was planned that since 2011 it will be possible to start a complete set of cars with new power units.

Cooperation between the largest Chinese and Russian manufacturer of freight equipment in the idea should have given excellent synergies.

The interest of the largest Chinese automaker to gas is explained by the developed dealer network of the group. Chinese automakers have repeatedly criticized the reluctance to develop sales and service of their cars in Russia, so the dealer network of gas in this transaction was represented by the main asset.

Then a legitimate question was averaged: and whether at the same time G AZ get some technologies from FAW? Apparently, this was the reason for which this Memorandum of intentions remained on paper.

KAMAZ + Hawtai brothers not in the age

The second similar memorandum was signed in five years. It happened during an official visit to the PRC of the President of the Russian Federation Vladimir Putin. On September 3, 2015, in Beijing, the head of PJSC KAMAZ Sergei Kogogin and the head of the Chinese company Hawtai Motor Group Co. Zhang Syu Gene signed a framework agreement on the establishment of a joint venture for the production and sales of KAMAZ trucks in China and the Hawtai cars in Russia.

It was assumed that the production of cars under the brand of Hawtai in Russia will be organized at the production facilities of KamAZ. In turn, a new plant in Tianjin will be built to produce KAMAZ trucks in China. Sales of enterprises should be carried out using dealerships of both companies.

According to the plan, KAMAZ was supposed to be in the authorized capital of the joint venture, the production of trucks and management resources. In turn, Hawtai Motor Group Co provides technologies, design developments and other know-how in the production of crossovers. The signing ceremony took place in the presence of high guests.

But, as in the first case, the GAZ group, this memorandum was not constructed to be embodied in the real project. KAMAZ never began to produce his trucks in Tianjin, and the Chinese brand Hawtai in Naberezhnye Chelny. Thus, the first pancake turned out to be a com. More precisely, the first two «pancakes». The other thing is when Russian automakers independently looked for and found partners in the PRC. Such a search led to the establishment of perennial and resistant, purified from political situation, durable production, foreign trade and other connections. About such cooperation, our channel recently spoke in material about the Cabines of Chinese production on Russian trucks, read in the material «