Korean Hyundai plans to construct an engine factory with a capacity of 150,000 units in St. Petersburg, according to the presentation made by the company. As stated in the presentation, Russian engine component suppliers will also take part in the project. The investment amount has not been disclosed.
As stated by the vice-governor of St. Petersburg , the city administration plans to sign a special investment agreement (SPIC) with Hyundai, on the production of petrol, diesel and hybrid engines until the end of the year. According to the vice-governor, an almost 200 hectares production site has been reserved for Hyundai engine factory in St. Petersburg.
Hyundai has a 200,000 vehicle capacity plant in the city, manufacturing Hyundai Solaris, Hyundai Creta and KIA Rio. The Korean manufacturer carries out a large-scale assembly of Genesis and Hyundai vehicles at Avtotor plant. The share of Hyundai Group in the market was 10% in 2017 and the sales increased by 9% to 158,900 automobiles. The company plans to increase sales by 10% in 2018, to 175,000 units.