Lee Seok-bae, South Korea's ambassador to Russia, stated in a recent interview that Hyundai Motor and Kia are considering re-entering the Russian market.
In an interview with the Russian daily Izvestia on October 14, the ambassador said, "I understand that Hyundai and Kia still have a very strong interest in the Russian automotive market," adding that the companies are likely conducting market research to explore options for re-entry.
He identified the unresolved Ukraine conflict as a significant obstacle to Hyundai and Kia's return to Russia. Izvestia also reported that last month, Hyundai and Kia registered 10 and 9 trademarks, respectively, with the Russian patent office, continuing to protect their brand rights.
However, analysts suggest that even if sanctions are lifted, it will be challenging for the companies to return under the same conditions as before. During the military conflict between Russia and Ukraine in February 2022, Hyundai and Kia were the second and third largest car sellers in Russia, but since their withdrawal, Chinese companies have filled the gap.
The market share of Chinese brands in Russia has increased from 19% in 2022 to 58% in 2024, with a reported 41% in the first half of this year.
Izvestia forecasts that even after the conflict ends and sanctions are eased, South Korean automakers will face challenges due to structural changes in the market.
* This article has been translated by AI.
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