South Korea's car maker Hyundai Motor plans to produce a new car designed specially for Russia, at its factory near St. Petersburg, Managing Director of Hyundai Motor CIS Denis Petrunin said on Wednesday.

The car will be given a commercial name in September, Petrunin said, adding the price would be competitive with the Volkswagen Polo Sedan budget car.

Russia's subsidiary of Hyundai Motor, Hyundai Motor Manufacturing Rus, is building a plant in St. Petersburg, where a production line was launched in a test mode in May 2010.

The plant will produce C class sedans with an engine volume of 1.4 -1.6 liters. Mass production will start in January 2011. The company expects to reach its production capacity of 100,000 cars in late 2011 and to increase it further to 150,000 cars and operate three shifts.

MOSCOW, August 25 (RIA Novosti)