Hyundai Motor Group to invest W129b in UK EV startup Arrival

Andrew Cummings
January 18, 2020

Hyundai and Kia have invested €100 million (circa £85.2m) in UK-based electric vehicle start-up Arrival. Through the deal, Hyundai and Kia plan to introduce small and medium-sized electric vans and other products for logistics, on-demand ride-hailing and shuttle service companies.

Arrival has developed most of the vehicle itself, including software, components, materials and its modular "skateboard" platform.

Over the course of the partnership, Hyundai and Kia intend to use Arrival's skateboard platform technology to design new electric vehicles "across multiple vehicle categories".

The €100 million investment, to which Kia will contribute €20 million and Hyundai €80 million, into the 5-year-old startup means that Arrival is now valued almost €4 billion ($A4.85 billion), according to data from CB Insights.

"The eco-friendly vehicle market in Europe is expected to grow rapidly due to reinforcement of environmental regulations". Hyundai and Kia have been making awesome vehicles with uncompromising quality and share our vision for an electric mobility future.

Dubbed "Generation 2 Electric Vehicles" these surpass traditional vehicles in cost, design and efficiency, and are created to be assembled by microfactories located to serve local communities.

Electric vans from both companies will take on battery-powered cargo carriers made by Renault, Nissan, Mercedes-Benz, Volkswagen, China's LDV and many others. There's no word on whether or not the vehicles could be offered elsewhere, but the automakers said their PBVs will be aimed at European logistics companies as well as mobility firms that provide on-demand ride-hailing and shuttle services.

At this point, there is no timeline of any future Hyundai or Kia models that will leverage these technologies or if Arrival will spin up production anytime soon.

Hyundai President & Chief Innovation Officer, Youngcho Chi, has reportedly been quoted as stating that this investment is a new step by Hyundai & Kia in their pursuit of an open innovation strategy. "Accelerating electric vehicle adoption is good for everyone - for people, business and the planet and we are pleased to undertake this mission with our partners Kia and Hyundai", said Avinash Rugoobur, chief strategy officer of Arrival. Four months later, the group invested in IONITY, Europe's largest high-power electric vehicle charging network.

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