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The relaunch of the legendary Russian brand “Moskvich” based on Chinese JAC cars has so far proven to be a failure for the authorities. The project to organize large-scale assembly of models from the Middle Kingdom in Moscow under the Moskvich brand is bringing billions in losses.

Over the past year, the capital’s automobile plant produced about 32 thousand Muscovites, but only a little more than half of them were sold. This result is significantly inferior to the previous volumes of the plant, when the plant belonged to Renault and the enterprise annually assembled up to 150 thousand cars. The main reason for the failure is the significant difference in price between the original JAC models in China, where they cost about 1.3 million rubles, and the Muscovites with a price tag of 2.5 million rubles. Such a huge price gap significantly reduced the competitiveness of the “revived” brand in the domestic market and brought down sales.

As a result, the fate of the project to produce Muscovites now hangs in the balance. Losses from the assembly of cars under the legendary brand based on Chinese cars are growing like a snowball. If urgent effective measures are not taken, such as revising the pricing policy, then the recently revived brand could once again go down in history. (photo: Moskvich)

But for the Chinese automakers themselves, business in the Russian Federation seems to bring excellent benefits. The fact is that government agencies are actively purchasing cars from China. In particular, it recently became known that the Voyah Dream minivan ended up in the FSO service garage.

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