Following Nissan’s official announcement of its exit from the Russian market, Hyundai Motor could follow suit. As per Reuters, the South Korean company is also weighing its options over a potential sale of its manufacturing facility in Russia. A local newspaper said that the company management had recently received a report analysing the situation and future prospects in Russia.
The report includes the analysis of scenarios and impact of the sale of the company’s Russia plant along with citing the difficulties of conducting normal financial activities in the country.
There is currently no official announcement from the company on plans to exit the Russian market.
Hyundai Motor builds about 2 lakh units annually at its Russia plant accounting for about 4 per cent of its global production. The company had suspended production at its plant located in St Petersburg in March 2022 at a time when sanctions imposed against Russia over the hostilities in Ukraine saw multiple manufacturers suspend operations in the country.
Hyundai becomes the latest manufacturer to be considering a complete exit from the market with brands such as Nissan and Renault having previously announced the sale of their existing manufacturing facilities.
With inputs from Reuters
