Hyundai will sell its factory in this country for just 77 dollars, the company will suffer a big loss.
South Korean automobile company Hyundai’s factory in Russia is going to be sold at throwaway prices. Due to the war between Russia and Ukraine for the last two years, many companies have had to close their business from Russia. Hyundai has also been included in the list of these companies. Its factory in Russia is being sold for a token amount of $77. Due to this the company will have to suffer a loss of $ 219 million.
According to a media report, Hyundai has informed about its plan to sell its Russian factory in a regulatory filing. Work in this factory has stopped since Russia’s attack on Ukraine. Hyundai wants to transfer the assets of this factory located in St. Petersburg, Russia to Art Finance, a local company associated with Hyundai Automotive Services. Earlier, German automobile company Volkswagen had also sold its assets in Russia to Art Finance.
Before the war between Ukraine and Russia, Hyundai and its subsidiary Kia were among the top three car companies in Russia. After this war, many international automobile companies had decided to close their business in Russia. After this, the Russian automobile market has opened up for some local and Chinese car makers. The share of cars imported from China in this market has increased to about 49 percent. Chinese companies are also taking over those factories which were earlier owned by international companies.
Hyundai is one of the big companies in the Indian automobile market. Hyundai has announced to make six airbags available as standard in all its models in the country. Apart from this, the company will also make other safety features like three point seatbelt and seatbelt reminder available in all variants. 10 out of 13 Hyundai models will be offered with Electronic Stability Control (ESC) and Hill Start Assist Control (HAC) as standard across all models and variants. The company has said that Advanced Driver Aids System (ADAS) will also be available in five of its models. Hyundai has also welcomed the Bharat NCAP crash test which recently started in the country. The company has informed about initially including three of its models for this test.
