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Russia downturn economic effect automotive market

According to Yonhap news agency, by the devaluation of the ruble, long-term global economic downturn and other factors, a number of recent global auto makers decided to suspend production in Russia. In this context, South Korean car manufacturers dilemma, Russian exports to "lose" in the eyes, and long-term perspective can not be a complete withdrawal of the Russian market.

Industry generally believe that in March 2014, the won against the ruble exchange rate of 1 ruble against the 30 won, and now down to 1 ruble against the 18 won, so now exports to Russia uneconomical. Insiders said that Russia's western carmakers are discontinued or suspended, although Korean companies sharply reduce exports to Russia, but in the long run, we can not evacuate the Russian market, so manufacturers helpless.

 Tellingly, production Rena (Solaris) and Rui Europe (Rio) Hyundai Kia Motors manufacturing plant in Russia remained normal levels, while Hyundai and Kia control price increases, thanks to this, the market share increase . Hyundai-Kia Automotive side said that Russia now exports vehicles produced in Korea but there will be a loss, it was decided in the coming period of Russian internal production Rena and sharp focus in Europe, the company did not plan to cut production at local factories. Ssangyong Motor is currently in a stopped state exports to Russia, Ssangyong said it will continue to monitor market trends in Russia, waiting for the best time to resume exports.