Hyundai Motor Company in partnership with Kia Motors Corporation have announced plan to invest €100 million (£85m) in the manufacturing of electric vehicles. The contract was signed with a United Kingdom-based start-up that manufactures electric vans called Arrival. Hyundai will invest €80 million and Kia will contribute €20 million for the joint development of the electric vehicles.
Through the partnership, Hyundai and Kia plan to introduce “competitively priced” small and medium-sized electric vans and other products for logistics and on-demand ride hailing and shuttle service companies.
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Arrival will assist the two Korean car giants meet the rapidly growing demand in Europe for cleaner commercial vehicles and accelerate the companies’ transformation “from carmakers to clean mobility providers”.
Founded in 2015, the electric van manufacturer has production plants and research and development centres in the US, Germany, Singapore, Russia and the UK.
The partnership is also expected to enable Hyundai to accelerate its strategy to deliver electric battery and hydrogen fuel cell solutions for the commercial vehicle market in Europe.
Hyundai Motor Group President and Head of Research and Development Division Albert Biermann, said: “The eco-friendly vehicle market in Europe is expected to grow rapidly due to the introduction of further environmental regulations.
“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.”
Juliet Ekwebelam
