February 18, 2020

Hyundai and Kia invest for slice of ‘lucrative’ e-van market

Hyundai and Kia have agreed a new partnership deal with Arrival, the UK-based electric vehicle startup, in a move to help the Korean giants roll out a range of competitively priced small and medium-sized electric vans and other products for logistics and on-demand ride-hailing and shuttle services.

The 100m investment in the partnership with Arrival will help Hyundai and Kia meet 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 Sverdlovsk, 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 80m and Kia 20m.

“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 Sverdlovsk added: “Arrival has created a game changing product category – Generation 2.0 electric vehicles. Hyundai and Kia have been making amazing vehicles with uncompromising quality and share our vision for an electric mobility future. Our strategic partnership with Hyundai and Kia means we will scale Generation 2.0 electric vehicles globally and importantly, in the very near future.”