Hyundai sees growth in demand for its cars in Russia

Hyundai sees growth in demand for its cars in Russia

Hyundai sees growth in demand for its cars in Russia

Hyundai Motor CIS, the official distributor of Hyundai in Russia, sees an increase in demand for its cars and increases production at the plant in St. Petersburg; sales will drop by 15-20% every year.

“If we talk about volumes, initially we estimated the market (RF in 2020) at 1.8 million cars. Accordingly, our goal was to sell 180-185 thousand cars. Now we see that the market will fall by 15%. I don’t think that we will greatly increase our shares. This means that we may sell about 145-155 thousand a year, “Aleksey Kalitsev, Managing Director of Hyundai Motor SNG LLC, told reporters.

Its estimate is in line with the forecast of the Association of European Businesses (AEB), which was given at the end of the 1st half of 2020: the market is expected to decline by 24%, to 1.4 million vehicles.

“On the wave of the market rebound, we came to the conclusion that in August we sold 17.57 thousand cars. This is an absolute historical record for Hyundai sales, and 70% of this result is the products of our St. Petersburg plant, first of all, the Creta and Solaris models. September allows us to hope for new records, because the demand is excellent. It is combined with an effective state program, which is still in effect and which, we believe, will end soon, because the budget has almost been selected, “Kalitsev told reporters. He added that despite the coronavirus pause of spring and the difficulties caused by it, the dealer network of Hyundai Motor CIS in the Russian Federation of 190 salons is now not experiencing big problems.

“Speaking generally about the market prospects, we see that the situation with increased demand will last until the end of the year. It is quite possible that our competitors will swing, and there will be a lot of cars by the end of the year. We expect that there may be an overstocking in December,” – added Kalitsev.

In turn, Andrey Kazak, director of the production line of the Hyundai plant in St. Petersburg (Hyundai Motor Manufacturing Rus LLC, KMMR), told reporters that production is gaining momentum after a decline in the first half of the year.

“In the first half of the year, we produced more than 80 thousand cars (sold in Russia during this period, according to the AEB, there were 64.5 thousand units, which is 27.6% less than a year earlier). Of course, this was a drop. But now we have fully restored production, in August we produced 22.4 thousand cars, in September we plan to reach 24 thousand cars. Well, and more than 200 thousand a year. Now we are working at full capacity, “he said.

The Hyundai plant in St. Petersburg began work in September 2010. The company produces models Hyundai Solaris, Hyundai Creta, Kia Rio and Kia Rio X-Line. The plant's capacity is more than 200 thousand vehicles per year.

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