Hyundai Motor Company and Kia Motors Corporation have announced an investment of €100 million (£85m) in a UK-based start-up that manufactures electric vans.
They have signed a contract for investment in Arrival – with Hyundai investing €80 million and Kia contributing €20 million – and for the joint development of electric vehicles (EVs).
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.
Arrival is to help 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.
Albert Biermann, President and Head of Research and Development Division for Hyundai Motor Group 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.”