The world’s second-largest producer of automotive glass, China’s Fuyao Glass Industry Group, has commenced exporting products manufactured at its Kaluga plant in Russia, according to Mr Shi Tzyun, CEO of Fuyao Glass Rus.
Global automakers have started to export cars and auto parts manufactured in Russia after production costs dropped due to the devaluation of the ruble. Germany, Belgium, France and Spain are the first foreign markets for the locally produced auto glass, Mr Shi said at the Autoevolution international forum held in Kaluga on Tuesday.
The company announced plans to export two thirds of its products manufactured in Russia two years ago, but the ruble’s devaluation and the decline of the Russian car market has accelerated plans for export development.
Russia’s car market has seen a sharp slump in demand during the past year due to the country’s economic downturn, triggered by sanctions imposed last year over its role in the Ukraine conflict and a steep drop in global oil prices.
In the first half of the year, sales of cars in Russia dropped by 36 percent compared to the same period in 2014. Last month, sales plunged by 19.4 percent year-on-year, according to a report by the Association of European Businesses, a Moscow-based business lobby group that monitors the car market.