Russian Media: "Hyundai·Kia Continue Vehicle Production in Russia"… Hyundai Denies Claims (Comprehensive)

Hyundai Motor Store in downtown Seoul

Hyundai Motor Company and Kia have reportedly continued vehicle production in Russia, according to local Russian media reports. Following the Ukraine crisis, most global companies operating in Russia have either suspended operations or withdrawn their business sites.

On the 28th (local time), according to the Russian state news agency TASS, Denis Manturov, Russia's Minister of Industry and Trade, told reporters that Chinese automaker Haval and South Korea's Hyundai and Kia are continuing assembly production in Russia.

Minister Manturov stated, "Haval, as well as Hyundai and Kia, have somewhat reduced production but continue manufacturing at Avtotor," adding, "Hyundai is also producing some vehicles in Saint Petersburg."

Regarding other automakers that have halted production in Russia, he said, "We expect a final decision by the end of May."

Before Russia's invasion of Ukraine, Hyundai and Kia were conducting contract assembly of certain models through the Russian automobile plant Avtotor located in the Russian exclave of Kaliningrad in western Russia, and Hyundai was operating its own production facility in Saint Petersburg. However, production has officially been suspended since the Ukraine war began.

Stellantis, a US-European joint automotive company, recently stopped its Russian production plant due to parts supply disruptions caused by Western sanctions. French automaker Renault is reported to have decided to sell all shares of its subsidiaries in Russia and withdraw from the market.

Hyundai Motor Company dismissed Minister Manturov's claims as groundless. Hyundai stated, "The Russian (Saint Petersburg) plant is currently suspended, and there is no decision on whether to resume operations."

Hyundai halted operations at the Saint Petersburg plant last month due to difficulties in securing key parts amid international economic sanctions against Russia. The Russian market accounts for about 5% of Hyundai's global sales.

During the Q1 earnings conference call on the 25th, Hyundai revealed, "Industrial demand in Russia in Q1 fell by more than 30% year-on-year, and our sales also decreased by 25% year-on-year on a retail basis," adding that various contingency plans have been prepared, but did not mention whether the plant would resume operations.

This content was produced with the assistance of AI translation services.