Hyundai and Kia Invest $110 Million in UK Electric Van Startup, Arrival

Hyundai and Kia Invest $110m in UK Electric Van Startup, Arrival

Kia and Hyundai both have made an investment of €100 million (around $110 Million) in the Arrival, a UK based electric automotive startup.

On the investment part, Hyundai will contribute €80 Million, and Kia will invest €20 Million. This new strategic investment has made a startup valued at around $3.4 billion.

Founded in 2015, London headquartered, Arrival delivers a new product category of Generation 2 Electric Vehicles that are efficient in cost, design, and efficiency. To differentiate, fossil fuel vehicles with electric power trains are Generation 1 electric vehicles.

Hyundai and Kia will leverage Arrival technologies to electrify their vehicle fleets and develop mobility services. At the same time, Arrival will leverage newly raised capital to scale up production and development of its electric van.

Executive Opinion

Founder and CEO at Arrival, Denis Sverdlov, said, "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."

President and Head of Research and Development Division at Hyundai Motor Group, Albert Biermann, said, "The eco-friendly vehicle market in Europe is expected to grow rapidly due to reinforcement of environmental regulations. Through the joint development of commercial electric vehicles with Arrival, we will be able to gain a competitive advantage and progressively establish our leadership in the global eco-friendly vehicle market."

Arrival's Electric Vehicles

The investment will also boost both the Kia and Hyundai motive of manufacturing eco-friendly commercial vehicles, which will be an in-house product of Arrival and speeding up with some of the complete transformations of these giants into a clean mobility provider.

Hyundai and Kia plan to deliver purpose-built electric vehicles (PBVs) across multiple vehicle categories with the help of Arrival’s flexible skateboard platforms

Both companies also plan to leverage Arrival’s novel micro-factories located to serve local communities and software innovation. At the same time, Arrival will benefit from leveraging economies of scale from Hyundai and Kia's global footprint, notes the announcement.

PC: Pablo, Pixabay

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Udit Agarwal Opinions expressed by techsutram contributors are their own. More details

Udit Agarwal is a Digital Marketer and a Content Marketing Specialist, He enjoys technical as well as non-technical writing. His passion and urge for gaining new insights on gadgets, smartphones and technology has led him to Techsutram. He quenches his thirst for technology through his action oriented writing skills and a profound ability to stay up to date with latest industry trends.

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