Hyundai plans to boost production in Russia to 145,000 vehicles in 2017
MOSCOW. July 4 (Interfax) - The Russian division of South Korean auto manufacturer Hyundai intends to produce around 145,000 vehicles in Russia in 2017 at its plant in St. Petersburg and at Kaliningrad-based Avtotor, Hyundai Motor CIS Executive Director Alexei Kalitsev told journalists in Moscow on Tuesday.
"We have now essentially localized our entire model range. We are not planning any drastic changes for now. We are planning to produce around 120,000 Hyundai at the HMMR plant [LLC Hyundai Motor Manufacturing Rus, Hyundai's plant in St. Petersburg], with a proportion somewhere around 50/50. In other words, 60,000 Hyundai Creta and 60,000 Hyundai Solaris," he said, adding that in 2016 Hyundai produced around 110,000-112,000 vehicles at its enterprise "but only around 20,000 Solaris and Creta."
Hyundai's plant in St. Petersburg began operations in September 2010 and produces the Hyundai Solaris, Hyundai Creta and Kia Rio models. For 2017 as a whole the enterprise plans to produce 220,000 vehicles, up 6.3% compared to 2016.
Speaking about the production forecast for vehicles at Avtotor, Kalitsev said that the company expects production in 2017 to be 'around 25,000," adding that in 2016 Avtotor produced around 20,000-22,000 Hyundai vehicles.
He said that Hyundai was currently looking at possibilities of building an engine factory in Russia, but a specific decision had not yet been made. "We are looking at the possibility [of building an engine plant], but we still have time," he said, noting that Hyundai's industrial assembly agreement expires at the end of 2018.
"We consider that a special investment agreement is a suitable form of cooperation [for the auto-manufacturer and the state to complete the industrial assembly arrangement]. I think this is how it will be done," he said.
Hyundai said in a statement that the company sold 14,673 vehicles in Russia in June 2017, up 22% compared to the previous year. In H1 the company sold 70,588 cars, up 10% year-on-year, and 71,103 cars if the Genesis model was included.
Hyundai estimates that the entire Russian car market grew 7% to 718,000 cars in the first half of 2017. For 2017 as a whole, Hyundai forecasts that the market will reach 1.52 million cars, up 7% year-on-year. Hyundai intends to achieve 10% market share.