SEOUL, February 02 (AJP) - Hyundai Motor Group has decided not to exercise an option to repurchase its former manufacturing plant in Russia, effectively confirming its exit from the Russian market.
It will only maintain support services for existing customers, according to industry sources on Monday.
The group allowed the buyback option for the St. Petersburg facility to expire at the end of last month, choosing not to reacquire the plant.
Hyundai Motor Group sold its entire Russian business, including the factory, to local firm Art-Finance in December 2023 for 10,000 rubles (about 140,000 won) after operations were disrupted by parts shortages and logistical challenges following Russia’s invasion of Ukraine.
Given its strong market position in Russia at the time, Hyundai included a clause allowing it to repurchase the plant within two years. The expiration of that option now marks a formal decision not to return under current conditions.
Instead of pursuing re-entry into a market still facing geopolitical uncertainty, the group plans to focus on after-sales service for vehicles already sold in Russia to protect brand reputation, the sources said.
The company still could review a possible return if geopolitical risks, including the conflict in Ukraine, ease. Warranty repairs and customer service for existing Hyundai and Kia vehicles in Russia will continue.
Hyundai Motor Group began expanding in Russia in 2007, completed its sixth overseas production base in St. Petersburg in 2010 and started local vehicle production in 2011.
Operations were suspended in March 2022 following Western sanctions imposed after Russia’s invasion of Ukraine. Roughly one year and nine months later, the group divested its Russian operations, including the plant, to Art-Finance.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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