Hyundai Motor’s sales in Russia have experienced a significant decline for the second consecutive month, sparking renewed speculation about the automaker’s potential withdrawal from the Russian market in the aftermath of the Russia-Ukraine conflict. (Image courtesy of Yonhap)
SEOUL, Oct. 6 (Korea Bizwire) – Hyundai Motor’s sales in Russia have experienced a significant decline for the second consecutive month, sparking renewed speculation about the automaker’s potential withdrawal from the Russian market in the aftermath of the Russia-Ukraine conflict.
According to the Association of European Businesses (AEB), Hyundai managed to sell a mere 10 vehicles in the Russian market during the month of September, including one vehicle from its luxury brand, Genesis. This represents a staggering 99.8 percent decrease compared to the 43,000 units sold in the same month last year.
What makes this decline in September sales particularly notable is its alignment with local reports suggesting that Hyundai may cease its operations in Russia entirely within the coming year. In fact, the Russian Telegram channel Mash published an article on September 4 asserting that both Hyundai and Kia will fully shutter their Russian operations by the end of the current year.
Additionally, there are reports indicating that dealerships are actively reducing their inventory, with some even replacing signage and display vehicles with Chinese brands. This development raises the question of whether Hyundai will cease its local production, which has been ongoing for 13 years since the establishment of its Russian plant.
To provide some historical context, Hyundai initially entered the Russian market in the 1990s following the dissolution of the Soviet Union. In 2007, the company established a local subsidiary, and in 2010, it inaugurated its sixth overseas production facility, the St. Petersburg plant. Local production commenced the following year in 2011.
As of 2021, Hyundai’s production capacity in Russia stood at 234,000 units, but it has been suspended since March of the previous year, coinciding with the outbreak of the Russian-Ukrainian war.
Kevin Lee (kevinlee@koreabizwire.com)
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