Belarus Industry Minister Vital Vouk claims that car production at ‘BELGEE” is ‘almost half Belarusian’. This means that Belarusian-Chinese cars will be able to circumvent high customs duties on imports to the countries of the Eurasian Economic Area. So far Belarusians have not been crazy about Geely cars. Maybe Russians will be more excited?
Belarusian-Chinese or Chinese-Belarusian? The issue is extremely significant if you are going to sell thousands of cars to the countries of the Eurasian Economic Area. At present, the Belarusian contribution to Geely is insignificant.
“At the moment, localization is achieved by welding processes and painting taking place in Belarus,” explains the editor-in-chief of abw.by Alyaksei Khvashchinsky.
And to freely supply cars to the Russian market starting from July 1, localization needs to reach 50%. It is assumed that this will be done thanks to local engines, batteries and tires. The cost of the “Geely Atlas” SUV in Russia will be from 1 mln to 1.4 mln Russian rubles, depending on the equipment.
Residents of Togliatti (Russia):
“I do not really trust Chinese cars. I can only buy it on the advice of a friend. ”
“There will certainly be a problem with spare parts and car service. In general, it is necessary to support the local manufacturer.”
As the Industry Minister said last year, the lion’s share of the BELGEE production, about 90%, should go to Russia. Given the plans to reach a production of up to 60,000 cars a year, this would uproot the Russian market.
“The prospects for a Chinese car for such price are not very bright, because for this money you can buy such reliable cars as Hyundai Creta, Renault Duster, Renault KAPTUR, even Toyota RAV4,” says Azat Tzimerkhanov from the analytical agency “AUTOSTAT” (Togliatti).
The Russian expert recalls that last year the total number of Chinese cars bought in Russia was only about 36 thousand. It is only possible to conquer this market by reducing prices.
Belgee has a cheaper car to offer — the sedan “Geely Emgrand”. The price, at least in Belarus, starts from 23 thousand BYN.
Nevertheless, sales of Belarusian-Chinese “Geely” in our country are growing. In just the first five months of the year, more cars of this producer have been purchased than over the whole last year. A convenient credit program helps.
“We will hardly ever see mass sales in Belarus. Our economy is not in the position to allow people buy new cars. If everything goes well with PR and marketing in Russia, the plant will be able to reach the planned indicators,” notes abw.by editor-in-chief Alyaksei Khvashchinsky.
But the Chinese manufacturer has nowhere to hurry. Focusing primarily on its own market, Geely boasts a net profit of more than $ 1.5 billion last year. Therefore, for them the production in Barysau — a strategic project of the Belarusian authorities — is likely nothing more than a touchstone to the western market.
Usevalad Shlykau, “Belsat”
