Chongqing Changan Automobile Co. is planning to build complete knockdown sites in Russia and Iran to increase its exports. Changan inked last week an agreement with Iran Saipa Automotive Group to assemble its vehicles in the dealership group’s plant with complete knockdown kits imported from China, Chongqing Morning Post has reported.
Saipa’s plant will assemble Changan's Eado compact sedan and the CS35 compact SUV. The plant is expected to assemble 50,000 Changan vehicles annually. Changan will sell the assembled vehicles in Iran and in neighboring Middle East countries, according to the daily. The automaker did not detail when the Saipa plant will commence assembly of the vehicles. Changan is also planning to build a complete knockdown plant in Russia that can produce up to 100,000 vehicles annually.
The Chinese carmaker says it will build the project within the next two years, but has yet to decide on a location. Iran and Russia are considered as major export markets for Chinese carmakers. Chery Automobile Co., Great Wall Motor Co. and Zhejiang Geely Holding Group Co. have all opened complete knockdown site in Iran and Russia while Changan exports a small number of vehicles to the countries.
Changan builds cars and microvans for its own brands and operates joint ventures with Ford Motor Co., Mazda Motor Corp., Suzuki Motor Corp. and PSA/Peugeot-Citroen.