Hyundai Motor’s St. Petersburg Plant: Sale Plans and Production History
Hyundai Motor, together with an automotive production facility in St. Petersburg, sits on land once owned by General Motors. Reports from a major Russian news agency, citing a correspondent agency, indicate that the company is moving to sell this production site in St. Petersburg. The development marks a significant shift for Hyundai as it navigates the complex landscape of international manufacturing and sanctions, logistics, and market strategy in the region.
The South Korean automaker previously acquired General Motors’ facility in St. Petersburg and has since positioned the plant within its broader global production network. The site’s stated maximum output has been estimated at around 100,000 units per year, underscoring its role as a mid-sized production hub within Hyundai’s overseas footprint. Such capacity figures help contextualize the scale of the facility and the potential impact of any sale on regional supply chains and future production plans.
Earlier discussions referenced by the same sources noted that Hyundai had approved a proposal to divest the St. Petersburg facility for roughly 140,000 won per unit of economic value, with an agreement allowing a possible buyback option within the next two years. The reported valuation places the site at a multi-hundred-million dollar range, with current estimates placing the facility’s value in the neighborhood of two hundred and eighteen million US dollars. These figures illustrate the financial calculus involved in the sale and the potential for strategic realignment within Hyundai’s global operations.
Hyundai’s St. Petersburg plant has operated since 2010, making it a long-standing component of the region’s automotive landscape. The facility has the capacity to produce about 200,000 vehicles annually, and it has been associated with the production of models such as the Creta and Solaris, along with Kia Rio and Rio X-Line, before production paused in March 2022. The interruption in production reflected broader market and regulatory dynamics affecting the sector during that period, as well as the company’s reassessment of regional manufacturing strategies amid evolving demand patterns and geopolitical considerations.
Even as discussions about exiting the market proceed, Hyundai has indicated that it will maintain a commercial service presence in Russia. The automaker has signaled continued customer support and service operations for vehicles already in circulation, indicating a commitment to aftersales coverage and maintenance for the broader fleet within the region despite any strategic realignment. This approach aligns with industry practices where manufacturers seek to preserve service networks and brand trust even as production and sales trajectories shift due to external factors.