Hyundai Could Be Plotting A Surprising Return To Russia

More than three years into the war in Ukraine, the global automotive industry is still navigating the fallout, yet some companies may be eyeing a return to business as usual, even if the situation on the ground remains far from it.

After Russia invaded Ukraine, Western automakers began pulling out of the country under pressure from sweeping economic sanctions. Now, despite the ongoing war, one of the world’s largest auto manufacturers may be considering a comeback.

Read: Hyundai Sells Russian Factory For Just Over $100

Reports out of Korea claim that Hyundai Motor Group is thinking about returning to the Russian market. In December 2023, it officially exited the market, offloading its factory in St. Petersburg for the nominal sum of 140,000 won, or about $100. Importantly, it included a buyback option, which enables the conglomerate to get the plant back within two years of the sale.

In recent months, Hyundai and Kia have registered more than 20 trademarks for vehicles, parts, and accessories in Russia, all of which have been approved by the Russian Federal Service for Intellectual Property.

It’s hardly a surprise that the Hyundai Group wants to get back into Russia. In 2021, the Hyundai and Kia brands sold 354,000 vehicles across the country. At their peak, they had a massive 23.3% share of the total new car market.

Russia Jacks Up Duties

Hyundai’s interest in returning comes as peace talks between Russia and Ukraine continue in hopes of bringing the deadly war to an end. Additionally, Russia has been increasing duties on imported vehicles since October last year, negatively impacting Chinese brands. In the first half of 2024, cars from China accounted for over 80% of total auto imports, but this figure had dropped by half through the first two months of 2025.

The Kremlin likely hopes higher tariffs will push Chinese companies to set up manufacturing operations inside Russia, but so far, they seem hesitant. According to The Korea Herald, Chinese firms have shown little interest in building plants in the country, leaving an opening for Hyundai, which already has a factory footprint, albeit one it technically no longer owns.

“Until [Trump] and [Putin] agree on a ceasefire, Hyundai Motor is getting ready to return to the Russian market,” Daelim University professor Kim Pil-su told the Korean outlet. “With the Trump risks regarding [Hyundai’s] US exports, [it] needs to figure out ways to diversify their business regions. [It] already has experience in the Russian market and Russian customers have preference for Hyundai and Kia cars. It might cost them to buy back but they are going to proceed with the buyback option to revive their Russian business.”

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