China’s Haima Takes Second Crack at Russian Market

VIENNA – Haima Automobile, the Chinese auto maker partly owned by FAW Group, resumes distribution activities in Russia.

The auto maker selects the Haima 7 SUV, which is imported fully built from China, as the first model for its Russian comeback.

The Haima 7, powered by a 2.0L gasoline engine making 147 hp, starts at RR689,900 ($21,300).

“Our company has high hopes for the sale of the Haima 7 in Russia, which is a key region for us,” Dong Guoqiang, managing director of the Moscow-based import subsidiary Haima Avtomobili Rus, says in a statement.

Timur Dzhalilov, sales-department manager at the Moscow-based dealer UniMotors, tells WardsAuto the first vehicles have arrived at dealerships.

The Haima 7 launch is the second attempt to establish the brand in Russia. In fall 2010 the Russian auto maker Avtomobilnaya Kompaniya Derways started assembly of the Haima 3 hatchback and sedan at its plant in Cherkessk from completely knocked-down kits sourced from China. Derways also acted as distributor of the Haima 3, the brand’s only model sold in the country.

However, volumes did not meet expectations, in part because of high retail prices based on the high cost of the assembly kits Derways paid Haima. Russian Haima assembly was phased out in early 2012, and only about 3,800 locally built Haima 3 cars were sold.

For the comeback, the Chinese auto maker has created a wholly owned import and distribution subsidiary.

The company also may continue its cooperation with the Derways auto plant. There is an agreement between Haima and Derways on CKD assembly of the new-generation Haima 3. However, the timing for the vehicle's launch at Derways has not been announced.

Russia currently is the only European country in which the Haima brand is sold. In addition to Haima, six other Chinese brands are sold there.

Geely, the best-selling Chinese brand in Russia, delivered 11,701 cars through June, followed by Lifan (11,480), Great Wall (10,414) and Chery (9,672). Those are small numbers compared with the total market of 1,333,314 cars and light-commercial vehicles sold in the country in first-half 2013.