Chinese automakers are forced to withdraw from the Russian market and China's dreams of assembling vehicles in Russia have also come to a complete end, according to reports from 163.com.
China's Great Wall Motor Company has recently dissolved a joint venture it registered in the Republic of Tatarstan within the Russian Federation, according to the news from 163.com.
The relevant dissolution procedures are underway.
Chinese carmaker teamed up with the Republic of Tatarstan's Land and Property Management Authority in order to better develop the Russian market and benefit from the local government's preferential policies.
They established the Great Wall Alabuga Motor Open Joint Stock in March 2007, according to officials from the Great Wall Motor Company.
Since the joint venture was established, Great Wall Motor's application for tax concessions to assemble vehicles has yet been approved.
In accordance with Russia's relevant laws, the registered company will be dissolved if capital is not injected within a certain period of time.
Great Wall Motor Company would have been next in line to receive preferential tax treatment because Russia had already granted China's Chery Automobile Company tax concessions to assemble vehicles.
However, due to changes in Russia's automobile policies and Chinese automakers' unclear strategies in Russia, Chery was subsequently prohibited from assembling vehicles in Russia.
By People's Daily Online