Hyundai Motor Group Vice Chairman Chung Eui-sun (Right) shakes hands with Anthony Tan, CEO and founder of Grab, at a Singapore hotel during the Bloomberg New Economy Forum on Nov. 6, 2018. [Photo provided by Bloomberg New Economy Forum]
Hyundai Motor and its affiliate Kia Motors, South Korea`s two biggest carmakers, said they will invest $250 million in total to buy stakes in Southeast Asian ride-hailing firm Grab in hopes to gain a share in the EV-based ride-hailing services markets.
Hyundai will chip in $175 million and Kia the remaining. The latest investment was determined during talks for further cooperation in electric vehicles after Hyundai Motor invested $25 million in Grab early this year.
Under the partnership, Grab will launch a new mobility project by using EVs from the Korean carmakers, while Hyundai and Kia will provide EV-based ride-hailing services starting in Singapore next year and then expand the services in other Southeast Asian markets such as Vietnam and Malaysia. Hyundai will provide an initial volume of 200 electric vehicles to Grab early next year, and Kia is considering providing its own electric cars to Grab.
The three companies will closely analyze driving and user data, including driving distance and satisfaction of drivers and passengers to evaluate the potential for business expansion.
By Han Ye-kyung and Minu Kim
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