Hyundai Motor Company and Kia Motors Corporation, both Hyundai Motor Group affiliates, will invest an additional US$250 million into Grab and establish a partnership to pilot electric vehicle (EV) programmes across Southeast Asia.
Under the partnership, Grab and the affiliates will bring together stakeholders from the EV industry to collaborate on measures to improve EV adoption and awareness in Southeast Asia. Grab, Hyundai and Kia will roll out a series of EV pilot projects in Southeast Asia, beginning with Singapore next year. The projects will focus on utilising EVs to maximise cost efficiencies for Grab’s driver-partners.
The partnership will also work with regional stakeholders including governments and infrastructure players to improve EV infrastructure in the region, such as the building of a network of quick-charge stations. Additionally, the partnership will also explore the development of customised maintenance packages to Grab EV drivers and conduct research into how EVs can be most efficiently deployed in Southeast Asia under hot and humid climate conditions. The three companies will also explore how to customize EVs to optimize them for mobility service platforms.
The additional investment builds on Grab’s existing strategic partnership with Hyundai, which was first established in January this year, with the two companies exploring collaborations in the EV sector.
Meanwhile, the latest investment brings Grab’s current fundraising to US$2.7 billion raised. Grab is on track to raise over US$3 billion by the end of this year. Investors in Grab’s current financing round include Booking Holdings, Microsoft, Toyota, and global financial institutions such as OppenheimerFunds, Goldman Sachs Investment Partners, and Citi Ventures.
Youngcho Chi, Hyundai Motor Group’s chief innovation officer and head of strategy and technology division said Southeast Asia is a huge emerging market for EVs.
“With its unparalleled footprint across the region, and an ever-expanding base of customers and merchants, Grab is an invaluable partner that will help accelerate the adoption of electric vehicles in Southeast Asia,” he added.
“We both share a common vision on the electrification of mobility as one of the key foundations for building an environmentally sustainable and lowest-cost transportation platform,” said Ming Maa, president of Grab.