CAR production in Russia has been given a major boost after two manufacturers have committed to building new plants in St Petersburg.

From 2008, General Motors will start production of Chevrolet Captiva SUVs and a new generation of compact cars.

And the following year will see Nissan start work at its new proposed plant, manufacturing up to 50,000 units a year. The plant will produce at least three different models specifically adapted for the Russian market.

General Motors chairman and chief executive officer Rick Wagoner said: ‘This project clearly demonstrates our commitment to Russia as one of the world’s fastest growing auto markets. ‘With the addition of this new, wholly-owned facility, GM and its partners will be able to assemble more than 100,000 cars a year in Russia.’

Announcing final details of Nissan’s plant, president and chief executive officer Carlos Ghosn said: ‘Nissan is committing to contribute significantly to the development of the Russian car market.

‘Through the creation of new employment and investment in the local community, Nissan is making a confident statement about its operations in Russia.’