by Hyundai and Kia may return to the Russian market
Over three years of war in Ukraine, the global automotive market continues to adapt to the consequences of the conflict. However, some companies appear to be considering the possibility of resuming business in Russia, despite the ongoing hostilities.
After Russia’s full-scale invasion of Ukraine, Western automakers began exiting the Russian market due to sanctions. However, according to Korean media, Hyundai Motor Group may be considering a return. In December 2023, the company sold its plant in St. Petersburg for a symbolic $100, but retained a buyback option for two years.
Trademarks and market prospects
In recent months, Hyundai and Kia have registered over 20 trademarks for automobiles, parts, and accessories in Russia. This may indicate preparations to resume operations. In 2021, these brands sold 354 thousand vehicles in the country, holding a 23.3% market share.
“Before [Trump] and [Putin] agree on a ceasefire, Hyundai Motor is preparing to return to the Russian market,” stated Professor Kim Pil-soo from Telem University.
Russia has increased import duties on cars, which has affected Chinese brands. At the same time, Chinese companies are in no hurry to build plants in the Russian Federation, which opens up opportunities for Hyundai, which already has infrastructure there.
The situation remains uncertain, but for Hyundai, the Russian market could become a way to diversify, especially against the backdrop of risks to exports to the USA. At the same time, questions of ethics and support for the aggressor remain open.
