MOSCOW - Russia's Anti-Monopoly Service said on Monday it had approved Hyundai's possible acquisition of a General Motors factory in St. Petersburg, the Interfax news agency reported.
Hyundai's Russian unit confirmed last month it was discussing the acquisition of the plant, but declined to provide further details.
Russia's auto market has come under strain from the coronavirus crisis, which caused new car sales to plunge 23 percent in the first half, according to figures from the Association of European Businesses.
The AEB predicts a full year drop of 24 percent for new-car sales to 1.34 million.
The GM factory in the St. Petersburg suburb of Shushary can manufacture up to 100,000 cars a year.
It was built in 2008 but closed in 2015 as part of GM's decision to reduce its international operations.
Hyundai and sister brand Kia already have a factory in St. Petersburg with a production capacity of more than 200,000 vehicles a year. The South Korean automakers build the Hyundai Creta SUV and Solaris and Kia Rio sedans at the factory.
Hyundai and Kia sold a combined 145,071 vehicles in Russia during the first half, according to AEB figures.
Russian regulator backs Hyundai purchase of GM plant
Reuters
Hyundai-Kia builds the Solaris (shown), Creta SUV and Rio sedan in Russia.
