Hyundai sells Russian plants

Hyundai has signed a deal to sell its two plants in Russia meaning it’s the latest global carmaker to exit the country since the invasion of Ukraine.

The Russian buyer, Art-Finance, finalised the purchase of the South Korean marque’s factories in Saint Petersburg plants last week after receiving approvals from the Russian government and federal anti-monopoly service.

Most European and Japanese marques suspended production, and left the Russian market after Moscow despatched troops to Ukraine in February 2022 – often on-selling for a nominal fee as Russia has made it difficult to extract funds.

Hyundai Motor’s operations at its main plant were suspended in March 2022 and the company has now confirmed it has signed a deal to sell. 

Art-Finance says Hyundai’s assets have become part of its AGR Group. They “include two production sites of a company located in St Petersburg – a factory in the Kamenka industrial zone and a factory in the Shushary industrial zone.”

The second facility had belonged to General Motors before Hyundai purchased it in 2020. The two plants have a combined annual capacity of around 300,000 units.

Art-Finance is owned by Andrei Pavlovich, who acquired Volkswagen’s Russian assets in May 2023 It was then renamed to AGR Automotive. 

Art-Finance says the Hyundai plant will be renamed once all registration procedures have been completed.

In December, Hyundai said it planned to continue operating post-sales services for existing vehicles in consideration of local conditions in Russia.

Chinese carmakers have been plugging gaps left in Russia by departing western competitors, but Chinese vehicle sales there appear to have peaked at more than 56 per cent of the market with Russia’s domestic production slightly recovering.