South Korean automaker Hyundai Motor Group (HMG) is making preparations to re-enter the Russian market, ahead of a possible relaxation of sanctions as US-sponsored talks on a ceasefire between Russia and Ukraine continue, according to local reports.
Other South Korean conglomerates have already begun to re-enter the Russian market after they withdrew soon after Russia invaded the Ukraine in February 2022, along with international companies from other major trading partners including Japan, Europe and the US – although many kept their Russian operations ticking over in this period despite the sanctions.
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LG Electronics last week restarted operations at its home appliances plant near Moscow, while rival Samsung Electronics also recently stepped up its marketing operations in the country.
In the last few years, Chinese companies in particular have looked to fill the void in the Russian market, including automakers such as Great Wall Motors and Chery which have developed a significant presence in the local passenger vehicle market.
Hyundai and Kia sold a combined 378,000 vehicles in Russia in 2021, the last full-year before the war, in a total market of just under 1.7 million units. While HMG sold its vehicle assembly operations in St Petersburg in 2024, it is understood to have negotiated an option to rebuy the facilities within two years.
HMG’s main component manufacturing unit, Hyundai Mobis Company, continued to operate its production subsidiaries in Russia on a limited basis despite the sanctions. A spokesperson for the company recently stated: “Although Hyundai Motor and Kia have withdrawn, Hyundai Mobis continues to operate its production subsidiaries in Russia. We are recruiting based on changing market conditions.”
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By GlobalDataAccording to reports, Hyundai Mobis recently began recruiting staff for positions in quality management, plant operations, human resources and accounting, while another HMG component manufacturing affiliate – Hyundai Wia – began recruiting quality and electrical engineers and operational staff. Kia is also understood to have begun hiring technical consultants and dealer marketing personnel in Moscow.
