The Hyundai Motor Group is planning to invest approximately 300 billion won (US$270 million) in Russia for R&D purposes.
According to the group, Hyundai Motor Russia signed a special investment agreement on Dec. 25 with the Ministry of Industry and Trade of the Russian Federation and the Government of Saint Petersburg. According to the agreement, the group is going to set up an R&D center and work on new cars in Saint Petersburg by investing about 300 billion won for 10 years to come.
“Investment for engine and transmission manufacturing in Russia is yet to be determined,” the group explained, adding, “The recent agreement is not for investment in manufacturing facilities but for R&D investment, and a decision on engine and transmission manufacturing in Russia will be made down the road.”
At present, the Russian car market is one of the most important markets for the Hyundai Motor Group. From January to November this year, Hyundai Motor Company and Kia Motors sold 163,194 and 209,503 cars in Russia, up 14% and 24% from a year ago, respectively. Their combined sales volume in Russia is estimated to exceed 400,000 this year. Kia and Hyundai are currently the second- and third-largest automakers in Russia in terms of sales volume, respectively. Under the circumstances, the group’s investment for local production is becoming more and more likely.