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On October 13, Chongqing Lifan Group signed an investment agreement, with the state government of Lipetsk Oblast, worth nearly $ 300 million to build a new vehicle factory in the state.

Covering an area of ??600,000 square meters, the plant is located in the Lipetsk Oblast Special Economic Zone. It includes modern welding, painting and assembly shops. Upon completion, the planned production capacity will reach 60,000 vehicles annually. This is Lifan’s 3rd as well as its largest overseas investment, following the setting up of car plants in Uruguay and Ethiopia.

In 2007, Lifan assembled Breez,Solano, Smily and X60 models in Russia’s Derways factory. In 2013, Lifan sold 27,467 vehicles in Russia, an increase of more than 30 percent on the previous year, and was the largest Chinese car brand in Russia’s auto market for three consecutive years. Currently, Lifan Motors has 156 dealerships in 91 cities of Russia, which makes up the most dealers of Chinese car brands.

Yin Mingshan, chairman of Lifan Group said that localized production in Russia is an important step for Lifan's overseas expansion strategy. Lifan cars will therefore reduce costs, increase productivity, reduce competitive pressures, and have international competitiveness.

Mu Gang, general manager of Lifan Automobile Import and Export Corporation disclosed that they are considering using Russia as a bridgehead, and bringing Lifan cars to more Commonwealth of Independence States (CIS)countries.

By Huang Pei

Edited by Brian Salter