Hyundai Motor Company and Kia Motors Corporation have announced a strategic investment of US $110 million (Rs 780 crore) in a new partnership with Arrival, a UK-based electric vehicle startup.
Through the partnership, Hyundai and Kia plan to introduce competitively priced small and medium-sized electric vans and other products for logistics, on-demand ride-hailing and shuttle service companies. Arrival's scalable electric platform can be adapted for multiple vehicle categories and types which Arrival, Hyundai and Kia will explore for the development of a range of Purpose Built Vehicles (PBV).
The partnership with Arrival will help Hyundai and Kia meet the rapidly growing demand in Europe for eco-friendly commercial vehicles, and accelerate the brands' transformation from car makers to clean-mobility providers.
Albert Biermann, President and Head of Research and Development Division for Hyundai Motor Group, and Denis Sverdlov, Chief Executive Officer of Arrival, signed a contract for investment and the joint development of electric vehicles at the headquarters of Hyundai and Kia in Seoul. Of the total investment, Hyundai will contribute 80 percent and Kia 20 percent.
"The eco-friendly vehicle market in Europe is expected to grow rapidly due to the introduction of further environmental regulations," said Biermann. "Through the joint development of electric commercial vehicles with Arrival, we will be able to gain a competitive advantage and progressively establish our leadership in the global eco-friendly vehicle market, with Europe at the forefront."
Arrival's CEO Sverdlov added: "Arrival has created a game changing product category - Generation 2 Electric Vehicles. Hyundai and KIA make world-class vehicles with uncompromising quality. This strategic partnership will empower our companies to scale Generation 2 Electric Vehicles globally."