South Korean carmaker Hyundai is the newest automotive model to go away the Russian market within the wake of its invasion of Ukraine virtually two years in the past.
Within the weeks following the March 2022 invasion, Volkswagen, Toyota, Ford, Mercedes-Benz, Honda, BMW, Nissan, Renault and Hyundai suspended their Russian operations, citing components provide interruptions.
Whereas most manufacturers subsequently pulled out of the market and bought their native factories inside a handful of months, Reuters stories Hyundai lastly offloaded its two Russian factories to Artwork-Finance final week.
Hyundai mentioned in December it will promote its two factories for 10,000 rubles ($170), with a projected lack of 287 billion gained (A$326 million).
Regardless of the comparatively low sum, a number of carmakers have bought their Russian property for lower than Hyundai.
Nissan and Mazda each offloaded all or a part of their operations for one Euro ($1.65 at present), whereas Renault bought its 68 per cent stake in Russian carmaker AvtoVAZ for one ruble – equal to only two cents on the time.
Artwork-Finance – which is backed by automobile dealership community Avilon – beforehand bought Volkswagen’s manufacturing and associated enterprise services in Could 2023, reportedly spending €125 million ($206 million) on the German firm’s property.
Hyundai opened its first Russian manufacturing facility in 2010, the place it started to provide the Solaris – a regionally made model of the Accent hatch and sedan – from 2011, intently adopted by a Russian-market particular Kia Rio.
Manufacturing of the Hyundai Creta – which sits between the Venue and Santa Fe in measurement – started in 2016, quickly changing into the best-selling SUV in Russia between 2017 and 2021.
In December 2020 Hyundai bought a decommissioned former Normal Motors manufacturing facility in Saint Petersburg, although it’s understood the plant was not introduced again on-line earlier than its native operations had been suspended.
The departure of main carmakers from the Russian auto market has been cited as a driving issue behind China changing into the world’s largest car exporter in 2023, dethroning Japan for the primary time.
