SCO Market: Emerging Russian luxury car brand eyes Asian market
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03:27
Russia is one of the SCO members that is shifting its focus from predominantly military to one that's more economic. The development of its own car industry is one of the targets. Russia's domestic car sales increased in 2017 by 12.5% compared with 2016, and 83% of all those cars sold were made in Russia. Now, with significant government financial support, a new domestic luxury car brand has been introduced. CGTN's Aljosa Milenkovic met with Gerhard Hilgert, former CEO of Daimler Chrysler and now CEO of Aurus. They spoke about Aurus's plans for Russia and the rapidly expanding Asian and SCO markets.
GERHARD HILGERT, CEO AURUS "But in Russia business is, let me say like that if business starts to struggle so the most important power you need is to stand up and everybody stands up again and starts new and is highly motivated to develop because in this market, not only in automotive, there is a huge potential for development. Here is a new generation of young people. They are born already after the Soviet Union. They want to shape country they want to shape the business and to shape their personal future. This is a huge opportunity and this is a human resource capital in this country which can be used by foreign companies and direct investors as well. The future of our brand will find the same way of development so that we will be successful with our brand to offer on a global market the idea of Russian brand and to sell something specific in the Russian style. There is enough place on the market for a new player."
ALJOSA MILENKOVIC CGTN "And what is the difference between, for instance, Aurus and other high-end vehicle products like wrote Rolls-Royce or Maybach? What is the difference because I think that there is a niche which is already very much occupied by those brands which are on the market quite some time?"
GERHARD HILGERT, CEO AURUS "That's not a problem you know. There is a simple rule in business: Competition keeps people fresh. So, we're coming in and don't want to take the total market we just want to offer something new and then we'll see how people like luxury product with the Russian style coming from Russia. I think there is a segment in which is enough place for us on the market and we will be the new player."