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The Chinese automobile manufacturer Chery Automotive Co. (CAC) has signed a partnership agreement with the Russian-based Avtotor to assemble cars in Russia.

 

Details on the joint-venture are still under discussion, reports Wednesday's Economic Information Daily, quoting a manager from Chery.

 

Russian media sources confirmed the news and said Chery also plans to establish a factory with Avtotor if Chery cars are sold successfully in Russia.

 

Chery estimates that the investment in the new factory will total US$200 million.

 

Besides Chery, Avtotor also became the partner of Nanjing Yuejin and Zhongxing, two Chinese truck and SUV manufacturers, in July 2005.

 

Based in East China's Anhui Province, Chery was ranked number one in China for car sales last year, with total sales hitting 185,000 units, 118 percent more than the previous year.

 

Sales of China's Chery automobiles took a huge leap in January as 22,505 of the small cars were sold, an increase of 110 percent compared to the same month last year, according to the company's sales department.

 

The QQ, the company's flagship auto, saw sales of 12,865 in January, to lead China's small car market. Another of the company's models, the Qiyun, sold 7,575, more than two and half times that of the same period last year.

 

Chery attained its 2005 sales goal with 189,000 units sold. The company has now become China's sixth largest car maker.

 

According to the company, Chery is planning to put six new models on the market in 2006. Insiders say the company is expected sell 281,000 auto this year.

 

As one of China's leading domestic auto makers, the Anhui-based Chery has won recognition for its technological innovation.

 

In 2005, China's vehicle output grew 12.56 percent to 5.71 million units over the previous year. Sales of domestically-made vehicles grew 13.54 percent to 5.76 million units, according to statistics from the China Association of Automobile Manufacturers.

 

(Xinhua News Agency February 9, 2006)