Hyundai to produce budget car for Russia (RU)

Hyundai is preparing to launch production of an all-new budget model exclusively designed for the Russian market. The car will be manufactured in St. Petersburg.

Initial production will begin in September with full production coming into full swing in January 2011.

The new compact sedan will rival directly with Volkswagen’s Polo sedan – another car design especially for Russia – and will start from approximately £6,400 ($10k).

Hyundai is yet to name the car, however, Russian media speculate that the new model will be powered by either a 1.4 litre 109bhp petrol engine or a 1.6 litre 122bhp petrol engine.

The forthcoming sedan will underpin the all-new Elantra/Avante. Like the Polo sedan, the newcomer will have suspension tuned to Russian roads.