April 26, 2024

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[THE INVESTOR] Hyundai Motor and its affiliate Kia Motors announced on Nov. 7 that they will invest 284 billion won (US$250 million) for stake in Southeast Asian ride-hailing firm Grab.

Under the stake investment, Hyundai will provide the initial volume of 200 electric vehicles to Grab early next year, and Kia is considering providing its own electric cars to the Asian ride-hailing giant.

“For Hyundai and Kia, the investments are aimed at preemptively entering Southeast Asia’s EV markets and gaining a share in the EV-based ride-hailing services markets there,” a company spokesman said over the phone.

The auto group didn’t provide more details about the amount of the stake investment.

In partnership with Grab, the Korean carmakers 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, the statement said.

On top of supplying EVs, the carmakers are planning to provide maintenance and repair services for vehicles operated by Grab and to offer car finance services customized for the EVs. 

In January, Hyundai invested US$25 million in Grab.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)