Kaliningrad Avtotor is exploring the possibility of resuming automobile production at Hyundai’s plant in St. Petersburg by submitting a formal proposal to President Vladimir Putin. This development was reported by Interfax, citing a person familiar with the discussions.
The proposal includes a request for the Ministry of Industry and Trade to review the venture. The document notes that the earlier departure of major partners BMW and Hyundai from Russia hurt Avtotor’s performance and cautions that the company needs a new path forward to restore growth and stability.
Avtotor suggests restarting the Hyundai assembly line as soon as feasible, coupled with modernization of the facility and a plan to localize both the production of internal combustion engines and the entire line of vehicles, including inline hybrid models that can run on gas. The approach emphasizes bringing more components and assembly activities under Russian control to boost resilience and supply security. (Source: Interfax)
The company’s investment strategy envisions close cooperation with Hyundai’s production complex within Russia. After the exit of former partners, Avtotor has broadened its map of collaborations to include Chinese brands Kaiyi, BAIC, and SWM, aiming to diversify output and markets while maintaining a strong domestic footprint. (Source: Interfax)
Historically, Avtotor has positioned itself as a key player in Russia’s automotive sector, and the current initiative aligns with broader efforts to sustain manufacturing capability, support domestic supply chains, and preserve jobs in Kaliningrad and neighboring regions. The proposal underscores a strategic pivot toward localization, modernization, and expanded international partnerships as a way to stabilize the business amid market fluctuations and geopolitical tensions. (Source: Interfax)
In recent months, the market has watched for signals about how global automakers and their Russian affiliates adapt to evolving regulatory, economic, and sanction-related conditions. Avtotor’s plan to reengage with Hyundai while leveraging collaborations with Kaiyi, BAIC, SWM, and potentially other partners reflects a broader trend toward diversified alliances and resilient assembly networks across Russia and neighboring markets. (Source: Interfax)