Korean Media: Chinese Cars Have Taken the Lead, Can Hyundai Return to Russia?

On September 23, South Korean media "Chosun Ilbo" published an article stating that as the repurchase period for Hyundai Motor's Russian subsidiary (HMMR) is approaching in about three months, the possibility of its return to the local market is increasing.

According to information, Hyundai Motor is currently carefully discussing whether to acquire shares of its production subsidiary located in St. Petersburg, Russia. The deadline for the acquisition is at the end of this year.

Hyundai Motor exited the Russian market in December 2023, selling 100% of its local shares, including the St. Petersburg factory, to a Russian company Art Finance for 10,000 rubles (approximately 851 RMB). The main reason was the difficulty in purchasing parts due to international sanctions against Russia.

When selling, Hyundai Motor had a repurchase clause allowing the company to repurchase the factory within two years. The repurchase period will end in December this year.

Whether Hyundai can return to the Russian market depends on whether it can reacquire the production base. This is because Hyundai has been absent from the local market for about two years and must ensure the production base to quickly resume business.

Especially recently, Hyundai registered trademark rights in Russia, showing intentions to re-enter the Russian market again, so the attention from the industry is further increasing. It is reported that Hyundai registered three trademarks, including the modern iX10, with the Russian Federal Service for Intellectual Property in May this year.

Russia is a crucial market for Hyundai. In 2004, Hyundai surpassed Toyota with Accent, and in 2021, it became the best-selling foreign car brand in Russia. With such achievements, Hyundai increased its production to 234,000 units in 2021.

However, the industry generally believes that if Hyundai re-enters the Russian market, it will adopt a different strategy than before.

Currently, Chinese companies occupy more than 60% of the Russian automotive market. Some believe that in order to gain an advantage over Chinese competitors, Hyundai must launch new models that are of higher quality and better value for money than before.

A South Korean industry insider predicted that if Hyundai re-enters the Russian market, it could become an opportunity to prevent the deterioration of profitability caused by US tariffs.

Original: www.toutiao.com/article/1844020706700483/

Statement: This article represents the views of the author.