OREANDA-NEWS. The company "Alabuga-Motors" is preparing to begin the production of passenger cars of Chinese Dongfeng and Zotye in Tatarstan. Negotiations of the parties about the organization of the contract SKD assembly at the facilities of SEZ "Alabuga" (Tatarstan) are in the final stage. Investment in both projects is estimated at 191 million Rubles, writes the "RBK". Money for the assembly line will be provided by "Alabuga-motors" from the borrowed funds. In Tatarstan, the company plans to assemble two models - Dong Feng H30 CROSS and Zotye Z300, the maximum production capacity - is 7,000 cars a year. Delivery of vehicle kits are planned from Chinese plants, direct customer of cars will be the Russian representative of Dongfeng. In January, it is planned the start installation of the assembly line.

In general, "Alabuga-Motors" is focused on the production of 120-170 thousand cars, said the CEO in an interview with "Business online", Sergei Isayev, in September. Secretary of the Russian-Chinese Chamber of Trade facilitation of vehicle-technical and innovative products, Sergei Sanakoyev, said that Dongfeng plans to invest in the project 500 million Dollars. Among other partners of "Alabuga-Motors" in Tatarstan project, in addition to Dongfeng and Zotye, Mr.Isaev also called Chinese companies Jonway and Baic. Whether they will participate in the project, it is unknown.

"Alabuga-Motors" became a resident of the SEZ in March of 2014; the owner of the company is Sergei Isaev. The company now produces in Tatarstan special vehicles, including on the basis of the French vans, Peugeot Boxer. Among the preferences of SEZ residents - preferential income tax at a rate of 2% for the first five years and 7% - the next five years. Residents also for ten years are exempt from land, property and vehicle taxes.

Dongfeng was formed in 1969; it is the second largest Chinese automakers by sales. It is composed of small-scale enterprises for the production of small and large commercial vehicles, the production volume of which in 2013 was about 3 million units. In October, Dongfeng and the government of the Saratov region signed an agreement about the creation of a joint venture for the production of city buses with capacity of 500 units and an investment of over 100 million Dollars. Terms are not disclosed.

Zotye Holding Group - is a relatively young company, founded in 2005 in the province of Chzhechtszyan (China). At the initial stage it exported auto parts, and then it began to produce passenger cars. Production volumes of Zotye in the public domain could not be found.