Hyundai and Kia to develop electric commercial vehicles

Hyundai and Kia are trying to meet the growing demand in Europe for eco-friendly commercial vehicles.

Hyundai Motor Group president and head of research and development division Albert Biermann and Arrival chief executive Denis Sverdlov signed a contract for investment and the joint development of electric vehicles at the headquarters in Seoul.

“The eco-friendly vehicle market in Europe is expected to grow rapidly due to the introduction of further environmental regulations,” Biermann says. “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 million (NZD $134,214,318) and Kia will contribute €20 million (NZD $33,553,579).

“Arrival has created a game-changing product category – Generation 2 Electric Vehicles. Hyundai and Kia make world-class vehicles with uncompromising quality. This strategic partnership will empower our companies to scale Generation 2 Electric Vehicles globally,” Sverdlov says.

Arrival’s scalable electric platform can be adapted for multiple vehicle categories and types which Arrival, Hyundai and Kia will explore for the development of a range of Purpose Built Vehicles (PBV).

Hyundai and Kia recently announced its intention to build fully electric PBV and presented its PBV concept at CES 2020 earlier this month.

“This investment is part of an open innovation strategy pursued by Hyundai and Kia. We will accelerate investment and cooperation with companies with advanced technology such as Arrival, to respond to the rapidly changing eco-friendly vehicle market,” Hyundai Moro Group president and chief innovation officer Youngcho Chi says.

Hyundai and Kia are exploring partnerships with various businesses to build a leadership position in the rapidly expanding global EV market.