Mazda Russia plant request approved

Mazda said the Russian government had accepted its request to build a plant in the country and the automaker is now considering whether it should run the facility by itself or with a partner.

According to KHABAR KHODRO, "We applied for permission, and it was accepted," Mazda chief executive officer Takashi Yamanouchi said at a press conference for the domestic launch of the company's remodeled Demio (2) compact.

Mazda has reached a basic agreement with the Russian government and will now consider details including the location of the plant, a spokesman said.

As part of its push into rapidly growing emerging markets, where it has lagged behind its rivals, Mazda said earlier this month it would build its first overseas plant in six years in Mexico to supply vehicles to the local and South American markets.

The company, Japan's fifth-biggest car maker by sales volume, has also said it is considering building a production base in Russia.