Hyundai Mulls Localising Engine Production in Russia

PHOTO by blinow61 / Depositphotos

Hyundai is considering the possibility of localising engine production in Russia, the Russian Deputy Minister of Industry and Trade Alexander Morozov was quoted as saying by the RIA Novosti news agency.

According to the official, there are two options for implementing this project. The first is to build a new engine plant, the second is to arrange the output at already existing enterprises. In the second case, the volume of initial investments will be significantly lower as there will be no need in building new facilities or purchasing basic equipment, Morozov said.

He added that the project is at the negotiation stage as the parties are developing optimal conditions for attracting investments in order to deepen localisation. A representative of Hyundai confirmed that the company is currently analysing the prospects of the Russian car market.