Korean Automakers Gain Foothold in Russian Market

Korea's largest automotive group is gaining more ground in the Russian market, but that hasn't translated into higher profits.

Hyundai and affiliate Kia sold a combined 184,000 vehicles in Russia during the first six months of the year. That's down about half a percent from a year earlier, but compared to other automakers, the two Korean companies are faring relatively well. Overall car sales in the country fell nearly 8 percent in the first half.

Hyundai and Kia did particularly well in June, selling around 34,000 automobiles in total, which gave them a market share of 16.9 percent. This was higher than all other companies, and even more than Russia's leading carmaker AvtoVaz, which claimed about 15 percent.

However, this has not resulted in higher profits. The Russian arm of both Hyundai and Kia posted net losses of over US$22 million each during the first quarter.