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September 21 saw the opening of Hyundai and Magna plants in Russia, something that experts say will add substantially to developing the country’s automotive industry.

On Tuesday, South Korea's Hyundai Motor Co. officially opened its first plant in Russia, a facility outside St. Petersburg that will produce as many as 150,000 cars a year. Speaking at the opening ceremony, Hyundai officials specifically touted the facility as the first full-cycle foreign auto plant in Russia. It means that the St.Pete-based Hyundai plant will have the highest share of locally produced components among the foreign carmakers in Russia, experts explained.

Opening its plant near St.Petersburg on Tuesday was also Canada’s Magna, one of the world’s largest car utilities producers. The plant will produce different auto parts for cars and car plants based in the Leningrad region. In Moscow, expert Viktor Pokhmelkin hails the opening of the plants, which he argues will give the Russian automotive industry a much-needed shot in the arm.

To put our auto industry back on track, we should first and foremost collaborate closely with our foreign partners, Pokhmelkin says. The focus should be placed on building more full-cycle plants, which will deal with producing foreign car parts on Russian soil, he explains. This will help shore up national car makers and tackle unemployment, which will, in turn, contribute to Russia’s economic overhaul, Pokhmelkin concludes.

Giving a boost to Russia’s automotive industry is certainly a formidable task, experts admit, citing previous unsuccessful attempts by Russian shareholders to buy Opel’s controlling stake. In this regard, Tuesday’s opening of Hyundai and Magna plants in Russia is of paramount importance, experts explained, expressing hope that other foreign car makers will soon follow suit.

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