Hyundai Motor reshapes overseas portfolio toward future mobility

Hyundai Motor Group Executive Chair Chung Euisun arrives at the Seoul Gimpo Business Aviation Center to depart for Toronto to support the Korean government's defense partnership with Canada, Jan. 26. Yonhap

Hyundai Motor Group is overhauling its overseas operations to prioritize future mobility technologies, while scaling back investments in conventional sales areas.

Following last month’s CES tech fair, the carmaker is presenting itself not as a conventional automaker, but as a tech firm driving future mobility in the age of physical artificial intelligence (AI).

The move is clear when looking at the company’s latest overseas business realignment.

The group made headlines after deciding not to repurchase its factory in Russia, a move that officially ends its manufacturing presence in the country amid persistent geopolitical risks tied to the Russia-Ukraine war.

In December 2023, the carmaker sold its 100 percent stake in the St. Petersburg plant to a Russian firm for just 140,000 won ($96), with a buyback option allowing Hyundai to repurchase the facility within two years. That option expired at the end of January.

Hyundai Motor's former auto factory in St. Petersburg, Russia / TASS-Yonhap

Hyundai Motor and Kia were the top-selling carmakers in Russia together before the war broke out in 2021. Their combined market share reached 23.6 percent that year, but after the group suspended operations at the plant in March 2022, Chinese brands quickly gained ground in the market.

According to data from the Korea Automobile and Mobility Association, Chinese carmakers held a 60.4 percent share of Russia’s car market in 2024.

Industry officials said the move signals the automaker’s strategy to shift its overseas focus to emerging markets like India, instead of resuming sales in politically risky regions.

“Hyundai Motor Group appears to [have] shifted its focus into other rapidly growing markets with strong demand, rather than resuming its business there even in the face of toughening rivalry against Chinese counterparts and lingering geopolitical uncertainties,” an official from the industry said.

Hyundai Motor Group Executive Chair Chung Euisun, front row center, inspects a factory in Pune, India, Jan. 13. Courtesy of Hyundai Motor Group

Auto experts said the carmaker’s exit from Russia highlights its focus on emerging growth areas, including robotics and eco-friendly mobility.

“As evidenced by the group’s series of recent announcements, the carmaker is expanding its presence in next-generation growth areas, such as humanoid robots and hydrogen and electric vehicles, and the Russia business is far from such a future vision,” said Kim Pil-soo, a professor of automotive technology at Daelim University College.

According to Kim, the carmaker’s exit from Russia remains debatable, since the market could serve as a stable revenue stream until profits from its future mobility ventures materialize.

Hyundai Motor Group’s move to strengthen a hydrogen energy partnership with Canada also shows the firm’s strong commitment to boosting its presence in future mobility.

Last week, the group’s Executive Chair Chung Euisun joined a government-led delegation to support Korean shipbuilders’ bid to win a high-profile patrol submarine deal from Canada.

The Korean carmaker seeks to deepen its energy ties with Canada by utilizing the latter’s rich natural resources and building a co-prosperity model, particularly in hydrogen energy.