China’s large-scale tire manufacturer, the Delta Group, will likely establish a local production plant in Russia. Delta Group stated that the project will be carried out in cooperation with the People's Bank of China.
The location of the new Russian plant will likely be in Nizhny Novgorod state, and the China Triangle Group will soon negotiate with the leaders of Nizhny Novgorod on the project. Delta Group stated that the advantage of the region lies in its favorable geographical location, that is, adjacent to Moscow, and has a group of highly qualified personnel, a history of traditional auto production and a well-developed science education base. According to the person in charge of the Russian delegation of the Triangle Group, the Nizhny Novgorod region is the only region that is likely to become the new factory site. Before the selection of Nizhny Novgorod as a site, the Chinese delegation also visited the State of Rostov. The person in charge said that the output of the new factory and the scale of investment have not yet been clarified. Delta Group is currently conducting an inspection of the Russian market and hopes that the new plant will produce both car tyres as well as truck tyres.
Denis Bilintsev, chief editor of Colesa.ru's tire portal, believes that the participation of foreign tire manufacturers in the Russian domestic tire market is a good thing for Russian consumers because it will promote the downward adjustment of affordable tire prices. The addition of Chinese manufacturers is a serious challenge for Russian tire manufacturers. Ultimately, Russian manufacturers will have to improve product quality, and Chinese manufacturers will also occupy a certain market with cheap and high-quality products.
Representatives of the Empire-Wheels Tire Distribution Center stated that despite the low price of triangular tires, the demand from Russian automobile manufacturers is still not high. He explained that this is mainly due to the fact that triangular tires are not well known among Russian consumers. In addition, the quality of triangular tires has not yet reached a very high standard. Representatives of the Empire-Wheels tire distribution center suggested: "When choosing Chinese-made and Russian-made tires, we should give priority to Chinese tires."
At present, the potential competitors of Delta Group do not think that Chinese companies will succeed in the Russian market. Anna Kamalova, marketing manager of Кордиант company, said: “Chinese tire manufacturers entering the Russian B-class tire market is a bold step.†She said that after Russia’s accession to the WTO, increasingly fierce market competition will compete against foreign competitors. The formation of more severe market conditions.
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