By Kim Hyun-cheol
Staff Reporter
Hyundai Motor announced Wednesday it has plans to become the biggest foreign automaker in Russia following construction of its first plant in the country.
The biggest South Korean automaker will hold a groundbreaking ceremony for the factory Thursday in St. Petersburg.
It plans to spend $400 million on the plant, to be built by 2010, with a capacity of 100,000 vehicles a year.
East European countries, including Russia, are rapidly emerging as a golden goose for South Korean automakers, as exports to the region have surpassed those to Western Europe.
A total of 123,600 vehicles were exported to the region in the first quarter of this year, ranking second behind North America. In the same period, the company sold 93,722 vehicles to West Europe.
Hyundai aims to sell a total of 200,000 vehicles in Russia this year, up 35.3 percent from last year, it said in a statement released Wednesday.
Last year, Hyundai's automobile sales in the rapid-growing market were tallied at 147,843, only trailing American maker General Motors. It has sold 65,458 vehicles in the first four months of this year.
Hyundai, currently running 168 dealerships throughout the country, plans to expand the number to 180 by the end of the year, as well as introduce new models in an ambitious move to spur momentum.
The Sonata's transformed edition will be launched later this year along with the Genesis and Veracruz, which will give customers a full lineup of models.