Chery Auto to buy a Russian plant for RMB 3 bln

China's Chery Automobile Co Ltd is planning to buy an existing manufacturing plant in Russia, its biggest overseas market, by spending RMB 3 billion (US$422.32 million).

The plant currently owned by Russia's SOK Group has an annual capacity of 300,000 units and was once an assembly plant for South Korea's Kia Motors Corp.

The Chinese auto maker may join hands with Ukraine Auto Group on the takeover issue in fears of possible opposition from the Russian government who intends to protect its domestic auto industry, sources said.

Last month, Russia introduced new auto imports regulations which largely lifted the imports threshold and requirements for setting up new plants, giving a great hit to Chinese auto makers.

Chery, famous for producing compacted models, sold 37,100 vehicles in Russia last year, accounting for one third of its total exports volume.