South Korea's Hyundai plans to exit Russia and sell its manufacturing plants there to a Kazakh company, South Korean media reported on Wednesday.
South Korean TV network MBC reported that negotiations to sell Hyundai's factories in Russia are in the final stage, adding that the automaker has been waiting for final approval from the Russian government.
"It is true that there are ongoing discussions regarding the sale, but nothing has been decided," Hyundai said, according to the TV network.
Hyundai suspended operations at its Russian operation last year. In March, the carmaker said it was reviewing "various options" for its Russian operation.
On Thursday, Hyundai said it was reviewing various scenarios for the future of its business in Russia, adding no decision had been made so far.
Many factories in Russia have suspended production and furloughed workers due to shortages of hi-tech equipment because of sanctions and an exodus of western manufacturers since Moscow invaded Ukraine last year.
Hyundai, with affiliate Kia, is among the world's top 10 biggest carmakers by sales and builds about 200,000 vehicles a year in Russia, about 4% of its global production capacity.
With Renault, Hyundai and Kia were among the top three-selling brands in Russia before the war. Now, as global players have pulled out, Chinese brands are replacing them in Russia's war economy.
Hyundai is exiting Russia and selling its plants
Image: 123RF/algeba
South Korea's Hyundai plans to exit Russia and sell its manufacturing plants there to a Kazakh company, South Korean media reported on Wednesday.
South Korean TV network MBC reported that negotiations to sell Hyundai's factories in Russia are in the final stage, adding that the automaker has been waiting for final approval from the Russian government.
"It is true that there are ongoing discussions regarding the sale, but nothing has been decided," Hyundai said, according to the TV network.
Hyundai suspended operations at its Russian operation last year. In March, the carmaker said it was reviewing "various options" for its Russian operation.
On Thursday, Hyundai said it was reviewing various scenarios for the future of its business in Russia, adding no decision had been made so far.
Many factories in Russia have suspended production and furloughed workers due to shortages of hi-tech equipment because of sanctions and an exodus of western manufacturers since Moscow invaded Ukraine last year.
Hyundai, with affiliate Kia, is among the world's top 10 biggest carmakers by sales and builds about 200,000 vehicles a year in Russia, about 4% of its global production capacity.
With Renault, Hyundai and Kia were among the top three-selling brands in Russia before the war. Now, as global players have pulled out, Chinese brands are replacing them in Russia's war economy.
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