Hyundai Motor Fully Exits Russian Manufacturing

[Global Strategy] Hyundai Motor has abandoned its option to repurchase its Russian plant, officially terminating all local production.

Core Development: Hyundai Motor formally abandons any return to manufacturing in Russia

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  On February 2, 2026, Hyundai confirmed it did not exercise its right to repurchase the Saint Petersburg plant, marking its complete exit from local production in Russia.

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  The facility was Russia’s first wholly foreign-owned, full-cycle vehicle assembly plant, with an annual capacity of 234,000 units, primarily producing the Hyundai Solaris and Kia Rio.

Strategic Rationale: Geopolitical risks outweigh market value

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  Although Hyundai-Kia sold over 400,000 vehicles combined in Russia in 2019, capturing a 23% market share, supply chain disruptions and payment system breakdowns following the Russia-Ukraine conflict forced production halts.

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  The company acknowledged that persistent uncertainty due to the stalled U.S.-Russia negotiations was the primary reason for forgoing the repurchase option.

Industry Impact: Korean automakers fully withdraw from Russian manufacturing

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  In 2024, Hyundai already sold the plant to Russia’s AGR Group for a symbolic price of $97. With the repurchase option now expired, any return to local production is no longer feasible.