The carmaker sold 130,166 cars in Russia between January and November, giving it a 9.1% market share.
Annual production capacity for the new plant, its sixth overseas factory, will be 100,000 vehicles.
Hyundai already assembles 70,000 to 80,000 cars under license at a plant in Taganrog, south Russia.
It also has factories in the US, China, India and Turkey, another is being built in the Czech Republic.
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