A report by TASS agency said that Hyundai plans to reduce its production volume at the St Petersburg plant by 6.3% next year. In a statement, Hyundai said it aims to produce 215,000 vehicles at the plant in 2016, down from 229,500 units produced this year.
Significance: The decision to reduce output is an acknowledgement of challenging market situation. The St Petersburg plant currently manufactures the Hyundai Solaris and the Kia Rio, and the Creta and KX3 are likely to be added in 2016 and 2017. Apart from the local market, vehicles produced at the plant are exported to markets like Kazakhstan, Egypt, and Lebanon. Despite the ongoing weakness in Russia, Hyundai has reaffirmed its commitment to the market with further investment in the plant.
