Hyundai, Kia invest additional US$250mil in Grab to drive EV adoption in SEA
By Digital News Asia November 7, 2018
- Latest investment takes current financing round to US$2.7bil
- Will launch series of EV pilots in SEA starting with Singapore in 2019
HYUNDAI Motor Group and Grab Holdings Inc (Grab), today announced an agreement under which Hyundai Motor Company and Kia Motors Corporation will invest an additional US$250 million (RM1.04 billion) into Grab and establish a partnership to pilot electric vehicles (EV) programs across Southeast Asia (SEA).
Under the EV partnership, Grab and Hyundai Motor Group affiliates will bring together stakeholders from the EV industry to collaborate on measures to improve EV adoption and awareness in SEA.
“As home to one of the world’s fastest growing consumer hubs, SEA is a huge emerging market for EVs,” said Youngcho Chi, Hyundai Motor Group’s chief innovation officer and head of Strategy & Technology Division. “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.”
To start, Grab, Hyundai and Kia will launch a series of EV pilot projects in SEA starting with Singapore in 2019. The pilots will focus on utilizing 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. The EV 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 SEA under hot and humid climate conditions.
“As the largest fleet owner of EVs in Singapore, we are excited to establish an industry partnership with Hyundai Motor Group to drive EV adoption across Southeast Asia. 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 (pic), president of Grab.
The three companies will also explore how to customise EVs to optimise them for mobility service platforms.
The additional investment builds on Grab’s existing strategic partnership with Hyundai and brings Grab’s current fundraising to US$2.7 billion (RM11.25 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.
Hyundai first invested in Grab in January, and the two companies began exploring collaborations in the EV sector. Grab’s latest initiative, which expands its cooperation with the Korean automotive group to include Kia, is a milestone in the company’s continuing efforts to promote the use of EVs in SEA. In August, Grab announced a partnership with Singapore’s energy utilities provider, SP Group, to use SP Group’s public EV charging network for its EVs.
With a commitment to driving innovation that will enhance its foothold in the future mobility market, Hyundai and Kia have been making significant strategic investments in promising startups. Hyundai Motor Group is building a network of industry experts that will contribute to enhancing people’s lives through the development of innovative mobility services.
Grab is one of the most frequently used mobile O2O platforms in SEA. Today, the Grab app has been downloaded onto over 125 million mobile devices, giving users access to over 8 million drivers, merchants and agents who deliver on-demand transport, food and package delivery services across 235 cities in eight countries.