Ward’s Auto is reporting that Hyundai and Renault are eyeing a return to the Russian market, assuming that Russia and Ukraine reach a peace deal following the former’s invasion of the latter.
if the fighting stops, the two global automakers, which left the Russian market due to the conflict, might reenter it.
Most global OEMs exited the Russian market following the invasion of Ukraine. Russians have been buying new cars from Russian automakers, Chinese car companies, and the gray market.
Some automakers sold their Russian business to the Russian government and/or local companies with the option of a buyback. With the possibility of a peace deal and the lifting of U.S. sanctions, global automakers are once again turning their eyes towards what was a generally profitable market before the war.
From Ward’s:
Renault has not ruled out returning to Russia, says CEO Luca de Meo, who tells the U.K.’s Financial Times: “I would rather focus on building the future than catching up. But we are business people. When we see an opportunity for business, we try to seize it.
“We have an option; let’s see how it goes.”
The European Union has also sanctioned Russia, and the French government remains supportive of the sanctions.
Hyundai, meanwhile, re-registered its brand name in Russia last year.
Volkswagen is also eyeing Russia — the German auto industry has been flat and re-entering the Russian market could give it a boost.
But, again, the German government and the European Commission also have sanctions against Russia.
As for the Americans, they left long before Vladimir Putin engineered an invasion of his neighbor. While Russia would likely welcome them in, the American public is generally more in favor of Ukraine than Russia, and if the Detroit Three re-enter the Russian market, it could lead to consumer backlash at home.
[Images: Hyundai, Volkswagen]
Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter.
