The St. Petersburg regional leadership, led by Governor Alexander Beglov, outlined a clear plan for the city’s former Hyundai and Toyota manufacturing sites. The focus is on localization, with production moving toward greater domestic content and collaboration with Russian designers and suppliers. This shift signals a broader push to boost local industrial capabilities and reduce reliance on international supply chains while maintaining high-quality standards in vehicle assembly.
Officials stressed that new production lines would come online, and the facilities would steadily incorporate more homegrown technologies. The strategy includes leveraging local engineering talent and supplier networks to enhance competitive performance, respond to market demand, and support regional employment opportunities in the automotive sector.
In 2024, the St. Petersburg plant of the former Hyundai operation was projected to produce thousands of crossovers annually, reflecting renewed activity at what is now the St. Petersburg Avtozavod. This plant’s transformation represents a broader reorientation of assets toward more autonomous, internally developed production capabilities that align with national industrial goals.
Earlier reports indicated that the legacy automobile factory in St. Petersburg had been renamed and restructured under new ownership. The facility came under the aegis of AGR Automobile Plant, which is part of the Art-Finance Group. The group also owns the former Kaluga plant previously operated by Volkswagen Group, signaling a strategic consolidation of regional automotive assets under a single corporate umbrella.
The management team at AGR Automobile Plant includes experienced executives who previously held senior roles within Hyundai Motor CIS, contributing to the ongoing development strategy for Hyundai and Genesis brands within Russia. This leadership background supports a continuity of expertise as the facilities transition toward domestically led production initiatives.
Since the 2010 launch of the St. Petersburg facility, the plant’s capacity stood at approximately 200 thousand vehicles per year. Operations faced disruption in March 2022, but the resumed production plan emphasizes rebuilding output while incorporating domestic technologies and supplier networks. In the past, models such as Solaris and Creta were produced at the site, alongside the Kia Rio X, illustrating a history of diverse product lines and the potential for future expansions with locally sourced components.
The broader regional automotive landscape now places a premium on self-reliance and strategic collaboration with Russian partners. This approach aims to sustain employment, foster technological capability, and preserve the city’s role in Russia’s evolving automotive manufacturing ecosystem. The evolution of these plants reflects a concerted effort to align with national industrial policy while maintaining competitive quality standards for a global market.