이 기사는 2022년 03월 11일 07:58 thebell 에 표출된 기사입니다.

The Ukraine crisis has created a dilemma for Hyundai Motor as the West’s sanctions against Russia escalate and the world’s major automakers cut their ties with the country, which is a strategically important market for the South Korean automotive giant.

Hyundai Motor has extended a pause on operations at its assembly plant in St Petersburg for an indefinite period, the company said on Monday.

The decision comes after production at the plant had been suspended since March 1 due to chip shortages. Hyundai Motor had originally expected operations to be resumed on Wednesday. The St Petersburg plant can manufacture 200,000 vehicles a year, or 4% of the carmaker’s total production capacity.

“(The St Petersburg plant) is having difficulty securing semiconductors and other parts because of the global supply chain shortage. We’re not sure at the moment when production can resume,” an official at Hyundai Motor said.

Russia’s invasion of Ukraine and subsequent sanctions by Western governments have isolated the Russian economy. Hyundai Motor hardly seems to expect support from the government as South Korea joined its Western allies in imposing sanctions against Russia, which has strained relations between the two countries.

Moreover, major global automakers are taking steps to boycott Russia. General Motors, Volvo and Volkswagen announced suspension of exports to the country. Ford not only stopped its exports to Russia, but suspended its joint venture operations there. Toyota and Honda also stopped production in the country.

Hyundai Motor, however, does not appear to be considering joining its global peers in taking actions against Russia. “Now is not the time to talk about suspending operations (in Russia),” a Hyundai Motor official said. “We will wait and watch how the situation unfolds.”

Russia represented 5.8% of the company’s global sales (including Kia models) in 2021, with revenue of about 3 trillion won ($2.4 billion) generated from the market each year. Hyundai Motor and its sister company Kia collectively hold a 22.6% market share in the country, only behind Renault Group with a 33.8% share.

On top of that, Hyundai Motor has been regarding Russia as the bridgehead for its move into the European market. In 2016, Chung Mong-koo, then Hyundai Motor Group chairman, himself visited the St Petersburg plant to encourage workers after the automaker’s Russia sales dropped by more than a third in the wake of sanctions on the country in response to its annexation of Crimea in 2014.

Hyundai Motor acquired a GM factory in St Petersburg in 2020, which has a capacity of up to 100,000 cars per year. The plant started operations earlier this year.

“Russia is a market that Hyundai Motor cannot give up because it is strategically important for the company’s expansion into Europe,” an industry insider said. “The company would want to remain cautious until the situation is clearer.” (Reporting by Yong-kyu Kang)