Han media: The "last spark" of Hyundai's return to the Russian market has finally gone out!
On March 5, the South Korean media "Herald Economic" published an article stating that Hyundai Motor has finally decided not to exercise the repurchase option for its St. Petersburg factory in Russia.
It seems that Hyundai Motor is about to completely exit the Russian market. This market, which once held the top market share, is no longer under its control.
Owing to the prolonged Ukraine-Russia conflict and the burden of sanctions against Russia, Hyundai Motor believes that returning to the market would not be as profitable as expected.
At this point, the "last spark" of Hyundai Motor's return to the Russian market has finally gone out.
Why didn't Hyundai exercise the repurchase right? Analysts pointed out that Hyundai's decision not to take up the repurchase plan, which expired on January 31, involved multiple complex factors.
Experts generally believe that it is too early to restore the production base in Russia given the lack of signs of an end to the Ukraine-Russia conflict.
Under the continued economic sanctions imposed by the West on Russia, the difficulty in supplying core components makes it difficult to operate even if the factory is repurchased, which is a decisive factor.
After Hyundai's withdrawal, Chinese automakers such as Chery and Geely have captured more than 50% of the market share in Russia, and the market structure has undergone a complete change. Even with huge investments to re-enter the market, it is difficult to regain the original market share, and this reality has become a fixed fact.
So what is Hyundai's future strategic positioning for the Russian market?
Hyundai Motor plans to transfer the ownership of the production base completely while still retaining the minimum level of responsibility for existing customers.
Hyundai Motor stated, "After-sales services such as warranty repairs and spare parts supply for vehicles already sold will continue to be provided." This aims to maintain the brand image while minimizing inconvenience for existing car owners as much as possible.
Hyundai Motor is comprehensively adjusting its global production and sales strategy to fill the gap left by the Russian market.
It will transform factories that previously relied on the Chinese domestic demand into export bases targeting Europe and emerging markets, thereby increasing production capacity utilization.
India has been selected as the core strategic base to replace Russia. Through large-scale investment and strengthening R&D centers, development will be promoted.
Original: toutiao.com/article/1858808758240391/
Statement: This article represents the views of the author himself.