On Wednesday, South Korean media claimed that Hyundai Motor Co (005380. KS) would leave Russia and sell its factories to Kazakh businesses.
MBC claimed that Hyundai is waiting for Russian government clearance to sell its plants in Russia. “There are indeed ongoing discussions regarding the sale, but nothing has been decided,” Hyundai Motor told the TV network.
Reuters was unable to reach Hyundai Motor after hours. Hyundai Motor reviewed “various options” for its Russian unit in March.
Since Moscow invaded Ukraine last year, many Russian enterprises have ceased production and furloughed staff owing to high-tech equipment shortages caused by sanctions and Western manufacturers leaving. For example, Hyundai Motor discontinued Russian operations last year.
Hyundai Motor, together with partner Kia Corp (000270. KS), is one of the world’s top 10 automakers by sales and makes roughly 200,000 vehicles in Russia, 4% of its global capacity.
Hyundai and Kia, along with Renault, were Russia’s top three brands before the war. However, as global businesses leave Russia’s war economy, Chinese brands are replacing them.