South Korean automaker Kia has firmly denied speculation that it plans to reenter the Russian market, calling such reports inaccurate.
According to industry sources and local media reports on Wednesday, Hyundai Motor Group clarified that recent reports suggesting Kia’s return to Russia were misinterpreted based on its presentation at the 2025 CEO Investor Day. The company explained that the figures mentioned in its mid-to-long-term global strategy pertain to the broader Commonwealth of Independent States (CIS) region, not specifically Russia.
The company emphasized that its sales targets included countries like Kazakhstan and Uzbekistan—both members of the CIS—but not Russia.
Local Kia dealerships in Russia also stated they had received no instructions or communications from the headquarters regarding a return. Given the current conditions in the Russian market, selling vehicles without a dealer network is practically unfeasible, and the necessary infrastructure is currently lacking.
Kia previously focused on B- and C-segment models (compact and midsize vehicles) in Russia, where price competitiveness is critical. However, reentering the market through imports alone, without local assembly, presents major profitability challenges—another significant barrier to entry.
When Hyundai Motor Group withdrew from Russia in 2022, it sold its St. Petersburg plant for approximately $100 million, including a two-year buyback option. However, industry experts interpret this not as a prelude to immediate reentry but as a strategic move to keep the option open for the future.
Russia’s new car market declined sharply after the outbreak of the war in Ukraine in 2022 but has recently shown signs of recovery.
However, Chinese brands have rapidly expanded their presence, growing their market share from 8% to over 60%. As a result, the market share once held by Hyundai and Kia has largely been overtaken by Chinese manufacturers.
An industry official noted that Kia’s return to Russia cannot be based solely on sales goals. Factors such as political instability, Western sanctions, and Russia’s industrial policies must all be considered.
The official added that, under current circumstances, the likelihood of Hyundai and Kia reentering the Russian market remains low.
