Russia to convert foreign car factories

VTV.vn - According to Russian officials, most of the car factories that were abandoned in the country after foreign car companies withdrew have now been restarted and put into production.

Russia to convert foreign car factories

According to First Deputy Prime Minister Denis Manturov, 11 of the 13 factories are now operating normally, while the remaining two will open in 2026. Russian and Chinese brands have now replaced Western brands. Reusing old facilities allows companies to take advantage of old infrastructure, enjoy tax incentives and save on new investments, thereby offering cars at more competitive prices on the Russian market. In addition, the conversion of factories also helps maintain about 30,000 jobs in the automotive industry.

Converting existing plants allows to reduce costs, as companies do not have to build plants from scratch; they have existing buildings, facilities, infrastructure and staff. These plants already comply with Russian regulations and standards, so they can participate in government procurement programs, preferential leasing and car leasing.

“This facilitates market entry and allows offering more models at more attractive prices than competitors. Carmakers pay lower taxes and recycling fees,” said Dmitry Baranov, a leading expert at Finam Management.

Source: https://vtv.vn/nga-chuyen-doi-su-dung-cac-nha-may-o-to-nuoc-ngoai-100251105213948624.htm