Hyundai will not buy back its former St. Petersburg plant

Hyundai Motor has officially refused the opportunity to buy back its former plant in St. Petersburg. The TASS news agency reported this on February 2, citing the automaker«s press service.

The company«s statement said: »Hyundai Motor did not exercise its right to repurchase its former plant in Russia.«

The plant was sold in 2024 for a symbolic sum with a two-year buyback option. This deadline expired in January. South Korean media had already reported on this decision by the concern on February 1.

Meanwhile, Hyundai Motor continues to provide warranty service and other services for previously sold vehicles, planning to maintain this practice in the future.

In March 2025, The Korea Times wrote that major South Korean businesses, including Hyundai Motor, LG Electronics, and Samsung Electronics, were exploring the possibility of returning to the Russian market.

Prior to the start of the special military operation, Hyundai Motor and KIA were two leading automotive brands in Russia. However, in 2022, the group halted operations at its St. Petersburg plant and sold it in early 2024 for 10,000 rubles (approx. $110 at current rates) to entrepreneur Alexei Pavlovich«s AGR Group. The deal included a two-year buyback option, so the final decision had to be made by the end of 2025.

After transitioning to the AGR Group, the enterprise in Kamenka began assembling four models under the Solaris brand from remaining Hyundai and KIA kits. According to available data, more than 20,000 vehicles were assembled there in 2024—significantly fewer than during the period of Korean operation. For comparison, 234,000 cars rolled off the assembly line of the Hyundai plant in St. Petersburg in 2021, and financial indicators have also decreased proportionally.