South Korea’s Hyundai Motor is considering selling off its suspended production plant in Russia, South Korean media said on Tuesday.
The car firm submitted a report analysing its future options in Russia’s difficult operating environment, Dong-a Ilbo newspaper said.
The war in Ukraine has led to a mass exodus of western manufacturers from Russia, leaving Hyundai with a shortage of high-tech equipment and forced to suspend operations.
Hyundai Motor, which together with affiliate Kia Corp is among the world’s top 10 biggest automakers by sales, builds about 200,000 vehicles per year in Russia, about 4% of its global production capacity.
$315 Million Loss
“We estimate that Hyundai and Kia together could generate at least a 450 billion won ($315 million) loss this year due to the business environment in Russia,” Esther Yim, an analyst at Samsung Securities, said.
“While it’s still unclear what Hyundai would do with its Russia factory, Hyundai has a lot to factor in to actually exit from Russia, such as financial situations and its relationship with Russia and the United States,” Kim Jin-woo, an analyst at Korea Investment & Securities, said.
Hyundai Motor was not immediately available for comment when contacted.
- Reuters, with additional editing from Alfie Habershon
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