Hyundai Considering Localization of Engine Assembly in Russia - Deputy Minister

Russia’s Deputy Industry and Trade Minister said that Hyundai is considering the possibility of localizing engine assembly in Russia, among the options is the construction of its own plant, or to contract production at the facilities of another car manufacturing companies' operations.

MOSCOW (Sputnik) – Hyundai is considering the possibility of localizing engine assembly in Russia, among the options is the construction of its own plant, or to contract production at the facilities of another car manufacturing companies' operations, Russia’s Deputy Industry and Trade Minister Aleksandr Morozov said Tuesday.

"Hyundai has no engine assembly in Russia. They have two possibilities: the first is to build an entire engine plant from scratch, the second is to place the necessary volume at the engine manufacturing plant, for example, in Kaluga (Volkswagen), or in Tatarstan, in [Special Economic Zone] Alabuga (Ford) or AvtoVAZ. Then, the volume of initial investments will be sharply reduced, it will be not necessary to construct buildings, to purchase basic equipment," Morozov told reporters.

The Russian official added that the ministry was participating in the negotiations and trying to create the conditions for the investment.

Hyundai's representative, in turn, said that the manufacturer was analyzing the perspectives of the Russian market.

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