Hyundai recently announced sale of its only manufacturing plant in Russia. This is the end of an industrial era that began in 2010 with the grand opening of the Hyundai plant in St. Petersburg.

The decision, taken at a meeting of the company’s board of directors, came after the plant was suspended in March 2022 due to difficulties in supplying components caused by because of Russia’s invasion of Ukraine.

Hyundai, like everyone else, comes from Russia

In an official statement, Hyundai confirmed the sale of all its shares in Hyundai Motor Manufacturing Rus (LLC “KHMPR”) to LLC “Art-Finance”. The producer emphasized that he was finalizing the details of the agreement with Art-Finance.

The move comes amid a series of exits by foreign companies from the Russian market, prompted by sanctions imposed by the European Union, the United States and other countries in response to the war in Ukraine.

Hyundai’s sales in Russia have fallen significantly from an average of 200,000 cars a year to just 45,000 last year. In August 2023, the manufacturer reached an all-time low, only selling six cars during the month.

Chinese manufacturers are attacking the Russian market

Russia has witnessed the outflow of foreign companies since the beginning of the war in Ukraine. In 2022, major players in the automotive industry, such as Volkswagen and Toyota, also ceased their operations in Russia. Nissan and Renault were already leaving the country in 2022, having sold their assets to the Russian state.

The Russian automobile market has also undergone major changes in recent years, with the emergence of Chinese manufacturers. Chery, Chang’an, Omoda and other Chinese brands invaded the market, gradually displacing Western competitors. According to official data, in the period from January to October 2023, 80% of cars imported to Russia came from China.

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