SEOUL, Feb 2 (Reuters) – South Korean automaker Hyundai Motor did not exercise a buyback option for its former manufacturing plant in Russia, the company said on Monday, amid the continuing war in Ukraine.
Along with its affiliate Kia, Hyundai was once the biggest foreign carmaker in Russia.
However, Chinese brands have gained significant market share over the past four years, as South Korean and other carmakers suspended local production after Moscow’s invasion of Ukraine provoked Western sanctions and disrupted supply chains and payments.
In 2024, Hyundai sold its plant to Russia’s AGR Automotive Group for a nominal 140,000 won ($97) and agreed to an option to repurchase it within a fixed timeframe. The buyback option expired in January.
“Hyundai Motor continues to provide warranty repairs and customer care services for previously sold vehicles, and remains committed to maintaining these services going forward,” Hyundai said in a statement to Reuters.
Reuters reported exclusively in December that Hyundai was not in a position to repurchase the factory due to the continuing war in Ukraine.
(Reporting by Hyunjoo Jin; Editing by Himani Sarkar and Sonali Paul)
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