China automaker Geely has signed a 5-year, US$1.5 billion deal with the Rolf Group of Russia for the import and sales of Geely sedans in the Russian market.
The signing ceremony was held in Moscow and was attended by senior officials from both the Chinese and Russian government including Vice Premier of China Wu Yi and the First Deputy Prime Minister of Russia.
The Rolf Group is the largest importer and retailer of foreign-made cars in Russia with turnover of more than US$2.7 billion in 2006 and a 16% share of the foreign car market in Russia. It owns and operates a network of 21 dealerships that retail international car brands in Russia.
Geely is planning to sell up to two-thirds of its total output outside China eventually. The Russian car market is one of the fastest growing car market in the world. Estimates put total new car sales there in 2007 at more than 2 million units; of that, foreign cars will amount to about 1.35 million.