Support The Moscow Times!

Honda Wants Local Assembly Plant

Honda Motor Co. plans to set up its first assembly plant in Russia, Nikkei business daily reported Sunday, as Japan's No. 3 automaker looks to lift its competitiveness in the fast-growing auto market.

The company is looking to invest several billion yen (tens of millions of dollars) to produce 30,000 to 50,000 cars annually, Nikkei said, adding that Honda has submitted plans to the Russian government and started talks with officials.

Honda is consulting with officials on the location of the assembly plant, which will use components imported from its global facilities, and the Russian Far East is seen as one candidate, Nikkei said.

A Honda spokesman declined to comment on the report.

General Motors, Renault and a host of other top players have already announced plans to ramp up production in Russia in exchange for lower import tariffs for parts.

Honda, which sold about 18,000 cars in Russia last year, has been selling its cars with tariffs of about 50 percent, making them more expensive than automobiles produced by rivals locally.

Russia's vehicles market is expected to double sales to about 4 million units a year by mid-decade.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more