Hyundai Motor to sell suspended Russian factory to Art-Finance

Panoramic view of Hyundai Motor Russian plant in Saint Petersburg [Courtesy of Hyundai Motor]

South Korean auto giant Hyundai Motor Co. decided to sell its Russian manufacturing factory, which halted operations due to the fallout from the Russia-Ukraine war.

Hyundai Motor said Tuesday that its board approved the plan to sell its stake in Hyundai Motor Manufacturing Rus LLC, its Russian plant in Saint Petersburg.

The purchaser, identified as the Russian firm Art-Finance LLC, will acquire the facility for a price of 10,000 rubles ($110).

The deal incorporates a provision that allows Hyundai Motor to repurchase the factory within two years after its sale.

Even after the sale, Hyundai Motor pledges to continue providing after-sales service for vehicles sold in Russia.

The St. Petersburg plant, Hyundai Motor’s sixth overseas production site, was completed in 2010 and began local production the following year.

In 2020, the company expanded its investment by acquiring the former General Motors Co.’s plant in St. Petersburg.

Until two years ago, Hyundai Motor was the No. 1 foreign automaker in Russia, with the production capacity reaching 234,000 units in 2021.

Among foreign automakers in Russia, Hyundai Motor was the only one with a complete production process from parts production to vehicle assembly.

Following the onset of the Russian-Ukrainian war and the subsequent scarcity of car components, however, the plant ceased operations in March 2022.