SEOUL, Feb 2 - Hyundai Motor said on Monday that it did not activate the option to buy back its former production plant in Russia, allowing the contractual repurchase window to lapse in January. The company and its affiliate Kia were once the largest foreign automakers operating in Russia, but operations at the site have been suspended since March 2022.
The suspension followed a wave of sanctions and other market reactions triggered by Moscow's invasion of Ukraine, which disrupted supply chains and payment flows. In 2024, Hyundai sold the Russian factory to a local firm at a reduced price and included an option to repurchase the facility within a set timeframe, reflecting a contingent plan to return if conditions permitted. That option has now expired.
In a statement, Hyundai reiterated that it will continue to provide warranty repairs and customer care services for vehicles it previously sold, and said it remains committed to maintaining those services going forward. The company did not announce any further actions related to its past operations in Russia.
The decision not to exercise the buyback clause formalizes Hyundai's current stance on its former Russian manufacturing foothold. The company has maintained after-sales support for existing customers despite the suspension of plant operations and the sale executed in 2024.
Information in this report is limited to details Hyundai released regarding the expired buyback option, the 2024 sale of the plant at a discounted price, the suspension of operations since March 2022, and the company's ongoing provision of warranty and customer care services for previously sold vehicles.
Summary
Hyundai allowed a contractual option to repurchase its Russian plant to expire in January after selling the facility in 2024 and suspending operations since March 2022. The automaker says it will continue warranty and customer support for vehicles sold earlier.
- Key points
- Hyundai and Kia were once the largest foreign carmakers in Russia; the plant has been idle since March 2022.
- In 2024 Hyundai sold the plant to a Russian company at a bargain price and secured a fixed-time repurchase option that expired in January.
- Hyundai will continue to provide warranty repairs and customer care services for previously sold vehicles.