This article was originally published on May 19, 2014 at 9:01 am EST
- Great Wall Motor (HK: 2333/ CH: 601633) says it is going to sign a contract with Russia’s Tula State government to build an automotive manufacturing plant in the state.
- The automotive manufacturing plant is designed with a capacity of 150,000 per day. Great Wall Motor plans to initially invest RMB 2.1 billion and then invest another RMB 1.1 billion.
Why It Matters:
- The investment in Russia is another effort of Great Wall Motor to expand its overseas market. In 2014, although the revenue of Great Wall Motor from domestic market increased 40%, the company’s overseas market did not perform well. The overseas revenue decreased 21.6% to RMB 4.8 billion which made Great Wall Motor ranked 4th among Chinese automotive manufacturers in terms of overseas revenue. Great Wall Motor ranked 2nd in 2012. Back in February, the company said it would halt the plan to build an automotive manufacturing plant in Thailand due to the political instability.
- Great Wall Motor also plans to enter the high-end SUV market to boost profits. The company planned to launch its high-end H8 SUV but has been met several problems. The company delayed the launch of H8 in January and then delayed again on May 8.