Mr. Lee noted that the capacity of the new plant will reach 150 thousand power units annually. The plant is planned to produce 1.6-liter engines from the Gamma family, which will be installed on Hyundai Solaris, Hyundai Creta, KIA Rio and KIA Rio X-Line models.
Earlier, the head of Hyundai Motor CIS, Alexey Kalitsev, stated that the company is considering the possibility of locating in St. Petersburg the production of not only engines, but also transmissions. According to his estimate, the launch of engine production will allow raising the level of localization of cars assembled in Russia to 60%.
Hyundai is seeking to promptly sign a special investment contract with the Russian government, as the current industrial assembly agreement expires in six months. However, the Ministry of Industry and Trade does not intend to conclude a new agreement and allow the company to access state subsidies without commitments to build an engine plant, while the ministry also insists on creating an enterprise for the production of gearboxes.
