Hyundai Motor Company and Kia Motors Corporation have formed a partnership with UK-based electric vehicle startup Arrival. As part of the agreement, the Korean OEMs have provided strategic investment of US$110m.
Through the partnership, Hyundai and Kia plan to introduce small and medium-size electric vans for logistics and on-demand ride-hailing and shuttle service companies. Arrival’s scalable electric platform can be adapted for multiple vehicle categories and types.
“The eco-friendly vehicle market in Europe is expected to grow rapidly due to the introduction of further environmental regulations,” said Albert Biermann, president and head of the research and development division for Hyundai Motor Group.
“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.”
Of the total investment, Hyundai will contribute 80%, with Kia contributing 20%.
Denis Sverdlov, CEO at Arrival, signed the contract for investment and the joint development of electric vehicles at the headquarters of Hyundai and Kia in Seoul.