Sok Group Company, the third largest car manufacturer in Russia, announced Tuesday that it will launch a joint-venture factory in China to develop a car under the price of 80,000 yuan (about 9,640 U.S. dollars) for ordinary Chinese families.
Sok is the first Russian car manufacturer to enter Chinese market.
The company has organized an expert team to more than 20 Chinese cities for market test and is planning to invest 200 million U.S. dollars in the joint-venture.
Sok vice-president Ilyin said a sound economic environment and policy system in China had attracted more and more foreign business, and the great marketing potential also drew much attention from foreign car manufacturers.
Sok, well known for "Izh" and "Roslada", will develop new types of its brands to meet the different needs of Chinese customers.
The Russian car industry usually uses aviation materials, which guarantees a reliability and durability of 30 years. Sok, with a group of experts in the field of aviation and spaceflight, introduced German and French techniques in its production line to meet modern car industry standards.
In 2001, Sok turned out 87,000 cars.
Insiders believe that the Russian car industry's entry into China's market will not only give rise to Russian exports to China, but also increase bilateral trade.
Founded in 1994, Sok holds 40 enterprises of various types, employing 80,000 people.
At the International Vehicle Exhibition to be held here on June 6, Sok will display its new-generation products to the Chinese audience.
A nuclear-powered submarine of the British Navy surfaced in the ice of the Arctic for the first time in many years