Hyundai Motor Group, with its electrification strategy (Strategy 2025) roadmap, has planned to spend over US$87bn on the development and production of electric vehicles (EVs) and autonomous vehicles by 2025. Hence, it has partnered and set-up strategic alliances with multiple stakeholders including EV component manufacturers such as batteries, charging infrastructure, battery recycling, leasing companies and shared mobility companies in recent times. All these deals have been central to Hyundai’s strategy of increasing EV adoption and creation of a favourable ecosystem for future electric mobility, says GlobalData, a leading data and analytics company.
Bakar Sadik Agwan, Senior Automotive Analyst at GlobalData, comments: ‘‘Hyundai plans to expand the portfolio of EVs to 44 models by 2025 which will include 23 battery EVs, 13 hybrid, six plug-in hybrids and two fuel-cell electric models. The company’s recent expansion of its existing partnership with Southeast Asia’s shared mobility giant ‘Grab’ is a certainly a ‘win-win’ situation for both the parties with electrification being their common priority.”
Hyundai’s first investment into Grab was US$250m in the latter’s Series H funding in 2018. Hyundai deployed its EVs in Grab’s fleet in Singapore in 2019 and Indonesia in 2020. Since then, the companies are working closely on analysing and solving issues related to adoption of EVs in the region. The latest expansion of the partnership aims at accelerating EV adoption in Southeast Asia, launching new EV business models including battery-as-a-service or leasing and EV financing to boost adoption.
Mr Agwan continues: “Technological improvements by automakers and carbon-neutrality commitments by shared mobility companies and government alike, globally, is resulting in similar partnerships. Hyundai particularly has been keen on partnering with shared mobility players across key geographies to boost its EVs and autonomous businesses.”
Hyundai partnered with Uber recently to supply its EVs to Uber’s fleet in Europe. The company has a joint venture with Lyft for electric and autonomous technology in the US, has investments in Indian shared mobility giant OLA. Additionally, the South Korean shared mobility company SoCar features the Hyundai’s IONIQ EV as part of its autonomous vehicle project.
Mr Agwan concludes: “High upfront costs, range anxiety, availability of charging infrastructure, concerns over repair and maintenance of EVs remain the key factors restraining the EVs adoption in the Southeast Asia region. The penetration rates are significantly lower when compared to other parts of the world. Hyundai, together with Grab, can build a better EV ecosystem and help overcome the existing challenges to widespread EV adoption in the region. Electrification of big shared mobility services fleet such as ride-hailing, car sharing and rental/subscription will help Hyundai to achieve better sales volumes and thus offer significant growth potential for EVs in the region.”
