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Leading Word: FAW Group has completed a draft letter of intent for cooperation with GAZ Group, Russia’s largest commercial vehicle manufacturer, and will invest together to establish a production base in Russia. Yang Xiaolin, an economic observer of the Economic Observatory, signed a letter of intent for cooperation with GAZ Group, the largest commercial vehicle manufacturer in Russia, after it signed a contract with Iran for the export of 300 vehicles for the liberation of J6 heavy trucks. Joint investment will be made to establish a production base in Russia to produce and sell FAW brand heavy-duty trucks. Within three years, local production will reach 5,000 to 10,000 vehicles.
There are various indications that entering the country may be a prelude to FAW Group’s acceleration of internationalization. The relevant person of FAW Group Import and Export Company said: "FAW is fully accelerating the construction of overseas vehicle bases."
Previously, FAW had reached an agreement with the Iranian auto industry management department. The two parties will jointly develop and produce passenger car products adapted to the Iranian market. The initial target is to produce 50,000 vehicles a year. The local production of Iranian heavy trucks will also be implemented this year.
According to the plan, FAW will also build, expand, and remanufacture a number of passenger vehicles, light vehicles, and medium-heavy-duty truck assembly bases in Pakistan, Mexico, Ukraine, Kazakhstan, and Ethiopia. FAW also invested in the establishment of FAW Africa Investment Co., Ltd. in South Africa to expand the existing production base of FAW-Medium-Heavy Duty Trucks. The plant site has been completed. In the future, both parties will also jointly invest in the construction of passenger cars and light car production bases.
In January of this year, the first batch of 100 liberation J6 heavy trucks have been sent to Iran from Dalian Port, and the remaining ones will also be exported in the near future. This business is the largest single overseas market order for the liberation of the J6 heavy truck since it was launched on the market. In the future, FAW will focus on the Iranian market and radiate other parts of the Middle East to further expand the FAW brand's sales and brand influence in the Middle East.