Hyundai Motor has officially announced its intentions to build a car plant in Russia in a company report, according to a local news agency.
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This is not, however the first ‘official’ announcement of the project. As just-auto reported on 12 November, Hyundai Motor chairman Chung Mong-koo originally disclosed the plan in a meeting with Russian government officials in Moscow on Friday 9 November.
Chung said then the factory would have an annual capacity of 100,000 vehicles.
According to Itar-Tass today (19 November), Hyundai will make a total investment of $US390m. The plant will indeed produce 100,000 vehicles a year but Hyundai expects to expand production as the Russian market develops further.
Initial output will be C class vehicles, adapted for Russia (where a higher ride height is essential for rough road use along with cold start ability in temperatures way below freezing).
Prime-Tass news agency reported that Hyundai is choosing a location in four Russian regions but won’t yet say where.
When the automaker’s chairman Chung met with Russia’s minister for economic development and trade, Elvira Nabiullina, and confirmed the company’s intention to build the plant, he said Hyundai considers Russia a key market.
Hyundai Motor CIS has been importer and distributor of Hyundai vehicles in Russia since last April. It sells a full line of models including the Getz, Elantra, NF, Grandeur, Tucson, Koup, Santa Fe, Matrix and Verna, according to Itar-Tass.
