Chinese quadcopter manufacturers may launch production in Russia

Small Chinese drone manufacturers are interested in localizing assembly in the Russian Federation and are negotiating a joint venture with local developers. Among potential investors they name Fimi, AEE and ZeroZero. The reason for the transfer of production to the Russian Federation sources “Kommersant” called problems with certification. The opinions of experts on the prospects of assembly are divided. Some believe that it will allow manufacturers from the PRC to increase their market share, others that drones will become more expensive, and sales volumes in the Russian Federation are still too small for investment in localization.

A Kommersant source in the electronics market said that a number of Chinese drone manufacturers are ready to launch SKD assembly of quadrocopters in Russia. Among those who want to do this, he names Fimi, AEE and ZeroZero (these companies did not respond to Kommersant’s requests over the weekend), the price for quadrocopters of these brands starts from 14 thousand rubles.

An interlocutor in one of the export centers confirmed that “a number of Russian companies are negotiating a joint venture with Chinese companies to assemble large-sized agricultural drones.”

Felix Fokin, Development Director of Geo Innoter LLC, also speaks about the interest of Chinese vendors in production in the Russian Federation. The first deputy general director of Fly Dron, Alexander Kaniovsky, clarified that two options are being discussed – “either the companies independently organize production lines in Russia, or a joint venture with domestic developers is created.”

Kommersant’s interlocutors in the electronics market and experts see different reasons for the interest of Chinese companies in localization in the Russian Federation. Thus, a Kommersant source in a large electronics distributor claims that the Federal Service for Technical and Export Control (FSTEC) “limited the certification of imported drones, since they operate at the same frequencies as the equipment of the Ministry of Emergency Situations, the Ministry of Internal Affairs, etc.” At the end of April, the State Commission on Radio Frequencies under the Ministry of Digital Development allocated frequencies in the 5.03–5.09 GHz range for UAV control (see “Kommersant” April 24). The FSTEC did not respond to Kommersant’s request.

All typical solutions of Chinese manufacturers are based on Wi-Fi frequencies of 2.3–2.5 GHz and 5.7–5.8 GHz, explains Alexey Yuretsky, CEO of Geoscan. According to him, the current requirements for equipment that contains transceivers should be subject to certification or notification by the FSB and FSTEC when passing customs: “I believe that this could be difficult, but only for new models, since all certificates for old ones received a long time ago. FSTEC does not block deliveries, but prohibits the use of drone control frequencies in the 5.8 GHz band, says Nikolay Ryashin, General Director of Rusdronoport.

A number of Russian market participants doubt the truth of the intentions of Chinese manufacturers.

They are “not interested in localization, since the market in the Russian Federation is too small,” says Mr. Ryashin. “They are interested in selling their products to many countries, mass, typical, thereby reducing the cost of products. Getting into localization is interesting only with a large guaranteed order,” he notes. Sales of drones, the expert believes, primarily fell due to massive bans on their flights in the regions.

Another Kommersant source on the market adds that drones made in Russia will be more expensive than those made in China. He confirms that the domestic market share of Chinese drone sales is “too small.” The Russian Federation is a fast-growing market with high purchasing power, objected Vitaly Mankevich, chairman of the Russian-Asian Union of Industrialists and Entrepreneurs. “In addition, in May, Prime Minister Mikhail Mishustin himself invited the Chinese side to cooperate in the production of civilian drones, calling it one of the most promising in cooperation between Russia and China,” he says.

Mr. Mankiewicz believes that large international brands, such as DJI, will not want to participate in such projects in order not to lose Western customers, while small Chinese companies will consider this option for themselves – “production in Russia can become a competitive advantage for a Chinese manufacturer, especially if will fall under the state support program.

Timofei Kornev, Aigul Abdullina