The end of Kia in Russia: the Koreans still fell under the US
- May 25, 2023
- 0
In the short term, the Russian car market had only one non-Chinese hope – the Hyundai Motor Group, which very cheerfully traded with us in cars of its
In the short term, the Russian car market had only one non-Chinese hope – the Hyundai Motor Group, which very cheerfully traded with us in cars of its Hyundai and Kia brands. For a long time, the Koreans tried to sit on two chairs, without completely breaking off relations with Russia and without getting into a scandal with the sanctions officers. Portal “AvtoVzglyad” tells why the period of their “multi-vector” is coming to an end.
More recently, we looked hopefully at the Korean automakers. Hyundai and Kia remained the only technically advanced brands on the Russian market that enjoyed unconditional buyer confidence. They seem to have stopped production, but the St. Petersburg factory continued to work in a strange way. Car maintenance was not interrupted, trains with spare parts regularly arrived in the Russian Federation.
Hope drifts away
All this gave some hope, albeit a faint one, that the cunning people of the Land of the Morning Silence would overcome pressure from the United States and obtain permission from them to resume normal relations with Russia, which AvtoVzglyad once wrote about. The farther, the stronger the premonition that the ladle will break anyway.
Overseas “friends” have seriously settled in South Korea. The president, Yoon Sok-yeol, has already acknowledged the possibility of military aid to Ukraine in the future, although the country’s leaders previously indignantly dismissed even hints of this. After a not so friendly gesture towards us, the Korean Ministry of Commerce has extended export sanctions against Russia.
They include parts for cars costing more than $50,000 and semiconductors. The government also plans to tighten export controls and ensure that Moscow and Minsk do not receive Korean dual-use goods through third countries. Separately, all the movements of the “southerners” do not seem to give the impression of sharp demarches, but the trend is clearly on the rise. In general, they arrived.
Ultimate! Please leave the cars!
The fact that the Russian-Korean friendship train has arrived at the terminus is also evidenced by Kia’s geopolitical landmarks. The leaders are proud to announce that sales of the brand’s cars are growing in the domestic market of South Korea, where 541,068 cars were sold in 2022, as well as in the US (654,554 units) and Europe (542,423 units).
All stop. About Russia and China – separately. As it turns out, sales there are consistently low for a variety of reasons, mainly geopolitics. At least, honestly – without any reference to the destroyed supply chains.
And by the way, the Russian market was not the most useless for Kia and Hyundai. In 2021 they sold no less than 205 thousand cars to our fellow citizens and had enough capacity for 370 thousand. There is nothing to say about China. But the Koreans have chosen a different direction – to Europe, where they are not really expected.
Nevertheless, the company’s management stubbornly strives to go there, citing the European market as the basis of its company’s global success, even though less than a fifth of Hyundai Motor Group’s annual production of three million cars is sold there . The company is not at all afraid of the European Commission, which has become crazy about ‘green’ technologies.
Hyundai’s management is aware that despite the propaganda that has fallen on the minds of consumers, these minds are not very willing to pay for expensive toys out of their own pockets. At the same time, the cost of electric vehicle technology is so high that electric vehicle production is unprofitable for automakers, even with government incentives to maintain sales.
Head in a noose
Nevertheless, the Koreans ignore calm and healthy Russia, where nothing threatens their affairs, and willingly stick their heads in the noose. Ho Soon-song, President and CEO of Kia, announced his intention to expand sales of eco-friendly vehicles, including BEVs, PHEV plug-in hybrid electric vehicles and HEVS electric hybrid electric vehicles. Kia Motors will increase their share from the current 17% to 52% by 2030.
…Well God bless the Koreans and have a good groom. And we say goodbye to them with great regret – for the past ten years they have brought joy to our drivers without snickering.
Photo avtovzglyad.ru
Photo avtovzglyad.ru
More recently, we looked hopefully at the Korean automakers. Hyundai and Kia remained the only technically advanced brands on the Russian market that enjoyed unconditional buyer confidence. They seem to have stopped production, but the St. Petersburg factory continued to work in a strange way. Car maintenance was not interrupted, trains with spare parts regularly arrived in the Russian Federation.
Hope drifts away
All this gave some hope, albeit a faint one, that the cunning people of the Land of the Morning Silence would overcome pressure from the United States and obtain permission from them to resume normal relations with Russia, which AvtoVzglyad once wrote about. The farther, the stronger the premonition that the ladle will break anyway.
Overseas “friends” have seriously settled in South Korea. The president, Yoon Sok-yeol, has already acknowledged the possibility of military aid to Ukraine in the future, although the country’s leaders previously indignantly dismissed even hints of this. After a not so friendly gesture towards us, the Korean Ministry of Commerce has extended export sanctions against Russia.
They include parts for cars costing more than $50,000 and semiconductors. The government also plans to tighten export controls and ensure that Moscow and Minsk do not receive Korean dual-use goods through third countries. Separately, all the movements of the “southerners” do not seem to give the impression of sharp demarches, but the trend is clearly on the rise. In general, they arrived.
Ultimate! Please leave the cars!
The fact that the Russian-Korean friendship train has arrived at the terminus is also evidenced by Kia’s geopolitical landmarks. The leaders are proud to announce that sales of the brand’s cars are growing in the domestic market of South Korea, where 541,068 cars were sold in 2022, as well as in the US (654,554 units) and Europe (542,423 units).
All stop. About Russia and China – separately. As it turns out, sales there are consistently low for a variety of reasons, mainly geopolitics. At least, honestly – without any reference to the destroyed supply chains.
And by the way, the Russian market was not the most useless for Kia and Hyundai. In 2021 they sold no less than 205 thousand cars to our fellow citizens and had enough capacity for 370 thousand. There is nothing to say about China. But the Koreans have chosen a different direction – to Europe, where they are not really expected.
Nevertheless, the company’s management stubbornly strives to go there, citing the European market as the basis of its company’s global success, even though less than a fifth of Hyundai Motor Group’s annual production of three million cars is sold there . The company is not at all afraid of the European Commission, which has become crazy about ‘green’ technologies.
Hyundai’s management is aware that despite the propaganda that has fallen on the minds of consumers, these minds are not very willing to pay for expensive toys out of their own pockets. At the same time, the cost of electric vehicle technology is so high that electric vehicle production is unprofitable for automakers, even with government incentives to maintain sales.
Head in a noose
Nevertheless, the Koreans ignore calm and sane Russia, where nothing threatens their business, and willingly stick their heads in the noose. Ho Soon-song, President and CEO of Kia, announced his intention to expand sales of eco-friendly vehicles, including BEVs, PHEV plug-in hybrid electric vehicles and HEVS electric hybrid electric vehicles. Kia Motors will increase their share from the current 17% to 52% by 2030.
…Well God bless the Koreans and have a good groom. And we say goodbye to them with great regret – for the past ten years they have brought joy to our drivers without snickering.
Source: Avto Vzglyad
Donald Salinas is an experienced automobile journalist and writer for Div Bracket. He brings his readers the latest news and developments from the world of automobiles, offering a unique and knowledgeable perspective on the latest trends and innovations in the automotive industry.
