RIA Novosti reported that German automaker Volkswagen will begin producing its Touareg full size SUV in Russia in January 2009.

Volkswagen in statement said that the first sales of the Russia-produced vehicle are planned for April. The SUV, to be produced in Kaluga, 190 kilometer southwest of Moscow, will sport 174 and 240 hp diesel engines.

Volkswagen AG is one of the world's largest automakers and produces around 5.7 million cars annually. Car production at its Kaluga plant began in the fall of 2007 where it is now producing VW Jettas and Passats as well as Skoda Fabia, Octavia and Octavia Tour cars.