Hyundai Motor's Russia Plant Transferred to Local Company, Manufactured by Chinese Maker

Foreign media reported that a local company has acquired the Hyundai Motor Russia plant, which had stopped operations due to the war, and plans to resume production starting next year. The article mentioned that discussions are underway for a Chinese complete car manufacturer to produce the models that Hyundai used to make and sell.

This news was revealed through a Telegram channel called Russian Automobile, citing an anonymous source. According to the post, a company named Avilon, which operates a car dealership business locally, is set to take over ownership of the plant. This company previously acquired the Volkswagen Russia plant in Kaluga.

Hyundai Motor factory in Saint Petersburg, Russia
[Photo by Yonhap News]

Foreign media reported that the deal is expected to be completed within this year, and production using existing parts could begin as early as the end of January next year. It was also reported that about 70,000 units are planned to be produced over the next year and a half. Production will be handled by Guangzhou Automobile Group (GAC), a Chinese state-owned automaker. Recently, executives from Avilon and GAC reportedly visited the Hyundai Motor Russia plant.

The Hyundai Motor Russia plant, which produced models such as Solaris, Creta, and Rio (Kia), is being discussed for production of the same models using local parts inventory by GAC, according to foreign media. It is expected that if GAC produces the vehicles, they will carry the GAC brand. Hyundai did not apply to extend the brand usage license locally as the suspension of operations due to the war prolonged.

Prime Minister Putin (current President) attending the inauguration ceremony of Hyundai Motor's Russia plant in 2010 is touring the factory together with Chung Mong-koo, Honorary Chairman of Hyundai Motor Group. [File Photo]

The Hyundai Motor Russia plant ceased operations in 2022 due to the war. Since entering the local market in 2011, Hyundai steadily increased production and sales, raising its market share to rival local manufacturers. However, with the war making local production and exports difficult, Hyundai has been considering various options including selling the plant.

It is known that after transferring ownership of the plant, discussions were held with the local company about a buyback condition after a certain period. However, the deal reportedly fell through due to disagreements over the timing of the buyback.

A Hyundai Motor Group official stated, "We are reviewing various scenarios and options regarding the Russia plant."

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