TOKYO, June 25 (Itar-Tass) - Japan’s major producer of car components NGK Spark Plug Co announced on Tuesday that it sets up a subsidiary firm in Moscow.
It will be selling ignition plugs and car sensors.
The new company has got the name LLC NGK Spark Plugs (Eurasia) and its capital is 120 million roubles. Early products of the Japanese company were sold in Russia via its German affiliate.
However, sources from the company headquarters in Nagoya told Tass that the Russian market is quickly growing and needs special attention. Last year, according to the company, Russia had 36 million cars, against about 25 million in 2005. Eighty percent of new vehicles are foreign makes, which creates a big demand, in particular, for good-quality ignition plugs.
After assembly plants of Toyota, Nissan and Mazda and other corporations were opened in Russia, Japanese companies making and selling car components have started arriving in Russia one after another. Russia is seen as one of a few markets in the world that have good growth prospects.