China's auto industry expanding into Russian market
Aljosa Milenkovic
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02:36

One of China's largest car manufacturers, Great Wall, opened its first production facility in the small town of Uzlovaya, approximate 230 kilometers south of Moscow. 

The operation was marked by the presidents of China and Russia during their meeting in Moscow on June 5. Back then the two leaders inspected first Haval vehicles produced in Great Wall's first Russian factory. 

The assembly line at the Great Wall Factory in Uzlovaya, Russia. /CGTN Photo

The assembly line at the Great Wall Factory in Uzlovaya, Russia. /CGTN Photo

There are already 120,000 Haval vehicles running on Russia's vast road network. The company is hoping 20,000 more by next year. But can they make it in Russia?

Leonid Golovanov is one of Russia's top auto journalists. He said Chinese cars have made dramatic improvement in quality and safety in recent years. 

"Comparing tests with competitors from (South) Korea, Japan and Europe are showing that Chinese cars are still lagging behind, but now it is not too much. And if Chinese companies can compensate that by lower price, then for sure there is a chance for them to take their slice of the Russian market," Golovanov told CGTN. 

Zhang Junxue, general manager of Haval Motor Manufacturing Russia. /CGTN Photo

Zhang Junxue, general manager of Haval Motor Manufacturing Russia. /CGTN Photo

The company's strategy is also based on localization of production, meaning more car parts to be produced here in Russia. That was explained by Zhang Junxue, who is General Manager of Haval Motor Manufacturing Rus LLC: 

"First stage we are already implemented 30 percent localization of products here. Because we have stamping, welding, painting and the assembly process. As well, we have components produced here like parts of the roof, injection molding process…" Zhang said. 

Ivan Martynenko is the head of the assembly line at the factory. He came 1,000 kilometers away from Saint Petersburg to get this job.

Ivan Martynenko, head of the assembly line. /CGTN Photo

Ivan Martynenko, head of the assembly line. /CGTN Photo

"Construction of this factory brings great perspectives for this region. Added jobs, great opportunities to accomplish yourself at the production industry. Me, and many of my colleagues arrived here in order to develop our skills in that area," Martynenko said. 

Martynenko is one of the 800 employees working at the factory in Uzlovaya. The number will grow to 3,000 in the near future.