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Auto Manufacturer Geely Plans to Launch Car Production in Russia

Russian automobile sector could see a fresh competitor, with whispers pointing towards Geely, a substantial Chinese conglomerate, aiming to manufacture vehicles locally within the nation.

Auto Manufacturer Geely Plans to Initiate Car Production in Russia
Auto Manufacturer Geely Plans to Initiate Car Production in Russia

Auto Manufacturer Geely Plans to Launch Car Production in Russia

In a report by the Russian newspaper Kommersant, it has been revealed that Chinese automaker Geely is considering cooperation with AO "Production of Passenger Cars" (PLA), which owns the Volga brand and has production capacities in Nizhny Novgorod.

Geely, known for its interest in the mass segment, taxi niche, and popular crossovers on the Russian market, is reportedly considering localising the Emgrand sedan and the Monjaro crossover for production in Russia. However, a final decision on the model range for the Russian production has not yet been made.

The press service of PLA is said to be studying various possibilities for entering the passenger car market, including the development of their own platform, partnership with component suppliers, and cooperation with a foreign manufacturer. It seems that Geely might be one of the potential partners in this venture.

Negotiations with PLA may also involve the Preface sedan. The project does not have a specific timeline, but Russia's First Deputy Prime Minister Denis Manturov announced plans for Volga car production in Nizhny Novgorod to start in spring 2026.

It is worth noting that Geely is a Chinese automaker, and the sources for the report are two informed sources. Mikhail Svetlov is the journalist who reported the news.

Analysts suggest that prospects of growth in the recycling fee and potential changes in customs regulation between Russia and Belarus could be reasons for Geely's change of plans. Currently, mass segment vehicles are likely to continue being assembled at the "BelGee" plant in Belarus, while higher-class models will be launched on the Russian conveyor.

Interestingly, the PLA intends to collaborate with Avtotor to produce Geely vehicles in Russia. Kommersant was unable to obtain an immediate comment from Geely regarding the news.

As this story develops, it will be interesting to see if Geely decides to move forward with local production in Russia and what impact this could have on the Russian and global automotive industries.

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