Russia’s new-vehicle sales rose 20% to 1.97 million units in 2006, with one estimate putting the market at 3 million in 2011—second only to Germany in Europe.

Suzuki sold 16,000 vehicles in Russia last year, 60% more than in 2005. The automobiles were shipped from Japan and Hungary. The carmaker plans to boost its Russian sales to 50,000 units in 2014. It has already decided to launch a new factory in St. Petersburg in 2009 for the Grand Vitara sport utility vehicle with 2- to 2.7-liter engines and the SX4 compact sedan with 1.5- to 2-liter engines.

Demand is expected to increase in Russia for lower-priced vehicles geared toward the middle class.