South Korean automaker says it is considering ‘various options’ for Saint Petersburg factory.
Published On 10 Mar 2023
Hyundai Motor says it is considering “various options” for its suspended factory in Russia, following a report that the South Korean automaker is discussing the plant’s sale to a Kazakhstan company.
Hyundai, South Korea’s third-largest conglomerate, said on Friday it had not decided the future of its Saint Petersburg facility following a news report that negotiations to sell the plant were in the final stages.
The company added that it would make an announcement once the matter had been decided, or no later than one month’s time.
South Korea’s Yonhap news agency reported on Thursday that the local government in St Petersburg was in negotiations to sell the factory to an auto-related company in Astana, Kazakhstan.
Hyundai Motor suspended operations at its Russian factory in March 2022, shortly after Russia invaded Ukraine, joining numerous brands that have paused their business or exited the country.
Hyundai made about 200,000 vehicles in Russia each year before the invasion.
Hyundai and sister brand Kia controlled more than one-quarter of Russia’s car market before the war, ranking second to France’s Renault.
The company said in regulatory filings that it had sold no cars in Russia in August and September.