JAC expands in Russia and Ukraine with CKD production & …

15 мая 2014 | Author: | Комментарии к записи JAC expands in Russia and Ukraine with CKD production & … отключены
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JAC expands in Russia and Ukraine CKD production

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16 2013 | Vladislav Vorotnikov

carmaker Anhui Jianghuai (JAC) has launched CKD assembly of the J5 in Ukraine and has plans to launch assembly of the S5 crossover in Russia in a bid to its presence in the region.

The J5 facility is at Bogdan Corporation’s car plant in the region of the country.

“To the production cycle involves the use of than 30 components from suppliers,” said a JAC representative. new production enterprise will the company to significantly reduce the of cars on the local market, as as save on logistics.”

According to information provided by the the price of the J5, with a 1.5-litre and manual transmission, costs UAH ($12,630) in Ukraine. The price for with an automatic transmission is UAH Bogdan estimates that the of the production facility will the company to save around UAH ($1,204) per car, which in turn that the price of on the local market will

The goal for the start of production of brand with our Chinese is to reach share of the 2-3% of the cars’ market in Ukraine in two said Bogdan’s president, Svinarchuk. “Unfortunately, we don’t very optimistic estimates for the next year. Its volume be about 180,000-190,000 cars, he

Focus on Russia

The new line is for 10,000 cars a year but the for 2014 are slightly lower: JAC to produce 5,000-6,000 J5 sedans, at half of which will go to To initiate export supplies the needs to achieve manufacturer CT-1, which is issued to with a localisation level of at 51%. JAC expects to secure the in the coming months.

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In parallel, JAC disclosed plans for the creation of a CKD facility within Russia. The of JAC’s compact urban S5 could be soon established at the enterprise in the Russian Republic of said the JAC spokesperson.

CKD production in Karachay-Cherkessia looks set to be extensive than in Ukraine. to unofficial information, production begin in 2015 with a for about 20,000 cars.

Car in Russia will enable JAC to even more money in Ukraine because Russian duties on vehicles are higher, at Today JAC’s S5 costs RUB ($19,100) on the Russian market. to the 4-6% savings that JAC make in the Ukraine by assembling the by CKD, after launching the facility in Russia the saving be up to 15-20% so the price on the market be lowered to approximately RUB 520,000, inflation.

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