The Taganrog Automobile Plant, run by TagAZ in Russia, has started pilot assembly
of Hyundai Accent cars built from CKD kits, AutoAsia Online reported.

If the tests go well and Taganrog gauges reasonable levels of potential demand,
a contract will be signed for on-going assembly.

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If not, Taganrog will return the CKD kits to Hyundai in a sale-or-return deal,
the website said.

TagAZ, part of the Doninvest group, is taking a cautious approach because it
was caught with surplus stock when it assembled a number of CKD Citroen Berlingos
but failed to sell them.

The company has applied for generous customs duty breaks in order to make the
Accent more competitive, AutoAsia Online said.

Moscow already provides TagAZ with tax breaks for the production of Daewoo-based
Assol, Orion and Condor cars, the report added.

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