The Hyundai Motor is determined to extend its presence in Russia

Tuesday, March 31, 2020

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The Ulyanovsk Autoworks, of the Severstal Auto holding, is prospective partner of South Korea's biggest car manufacturer. As the Moscow-based daily Vedomosti heard in the Seoul company office, Hyundai is negotiating for an Ulyanovsk assembly works. A decision is in prospect. A Severstal Auto spokesman confirmed the news. The matter concerns Starex, or H-1, minibuses and Terracan all-terrain vehicles. Assembly may start even within next year to offer an annual 100,000 cars, says the Vedomosti. If the partnership starts, Ulyanovsk investment may come up to US$200 or even 350 million, expect analysts. Hyundai has an ambitious goal to rank fifth in the world car market by 2010. Russia comes in handy here, with its vast market. Industrial experts are, however, rather skeptical about Russian purchases. The makes on the project are not the right cars to sell 100,000 a year, they warn. "Take Terracan. A full-size SUV, it is affordable for its class, at an average $40,000-but it will never see mass demand. A mere 475 went off throughout Russia for the preceding eight months. Even if local assembly reduces prices, the sales will by no means increase tenfold," says Valery Tarakanov, Rolf holding marketing director. As for the Starex, Comtrans Co. thinks it will cost a threshold $29,500 in Russia. Hyundai Motor sales for last year were 1,065,000 at a lump $20.9 billion, with a $1.5 billion net profit. Hyundai Russian sales grew 3.4-fold, last January into August, to 28,175 vehicles. The Ulyanovsk Autoworks manufactured 78,538 cars last year.

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