Mercedes-Benz will build a Mercedes-Benz SUV model in Russia next year

According to reports, Russian Minister of Industry and Trade Denis Manturov announced that Daimler will build a Mercedes-Benz car factory in Russia next year. Manturov said that the government and automakers will soon sign a contract to start building factories near Moscow.

Mercedes-Benz will build a plant in Russia next year to put into production Mercedes-Benz SUV models

Daimler confirmed in June last year that it was negotiating with the Russian government to establish a factory, but did not provide any details about the project. According to the German Business Daily, Mercedes-Benz has installed 30,000 SUVs in Russia using imported kits every year. The company plans to invest about 200 million euros (about 1.5 billion yuan). “We are talking to the Russian government to see if the economic requirements for local car production have been met,” a Daimler spokesperson pointed out.

It is reported that BMW is one of Mercedes-Benz's main competitors in Russia. BMW has assembled cars and SUVs through the components of the Russian contract manufacturer Afdo Tor, using components from Kaliningrad, Russia. Audi produces cars and SUVs at the Volkswagen Group plant in Kaluga, Russia.

Russia was once thought to be likely to overtake Germany as the largest single-car market in the region, but has been struggling with a sluggish economy that is affected by low oil prices, weak currency and Western sanctions on the country's involvement in Ukraine.

Last month, the European Business Association (AEB) predicted that the market might stop the recession. Luxury car sales were better than the popular mainstream models during the downturn. According to data released by AEB last week, sales of Mercedes-Benz Russia fell by 11% year-on-year last year. BMW sales were flat year-on-year, and Audi's sales fell 19%. Lexus sales increased by 19%.

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