China's Lifan Seals $160 Million Vehicle Export Contract with Russia

SHANGHAI - November 12, 2007:

Shortly after it passed a Russian crash test, the Chongqing-based Chinese automaker Lifan Auto has secured a $160 million auto parts export contract with Russian partner AutoMir, local newspaper Chongqing Evening News reported today.

This is the largest single auto parts export contract that a Chinese company has ever signed with a Russia company, the newspapers said. Under the contract, Lifan Auto will export 30,000 sets of Lifan 520 knock-down auto parts in the next three years.

Lifan has established an assembly line in Russia this year and the company plans to sell 8,000 vehicles in Russia next year and 40,000 units annually by 2010, according to Mao Gang, general manager of an imports and exports unit under Lifan Group.

Earlier this month, Lifan 520 sedan produced by the company's assembly line in Russia has passed the Europe R-94 crash test.

The test was performed by Russia's national collision experimental laboratory. The sedan's four doors can open easily after the car runs at 35 mph (56 km/h) into a deformable wall. Dual front airbags and side airbags work well and the dummy hasn't been damaged. The passenger compartment held its shape very well and there was no leak in the fuel tank.

Lifan, a Chongqing-based private motorcyle maker, obtained automobile production license from government in 2005. By October this year, the company has sold 40,000 vehicles and it expected to sell 50,000 this year. Lifan has set up assembly lines in Russia, Vietnam, Egypt, Iran and Ethiopia.

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