South Korean automobile major Hyundai Motor group Tuesday said it is investing USD 300 million in ride hailing service provider Ola, identifying India as the centrepiece in its strategy to gain leadership in global mobility market.
The investment will be jointly made by group firms — Hyundai Motor Company and Kia Motors Corporation — and under a tripartite agreement with Ola, the companies will jointly develop electric vehicles ecosystem and fleet services for global markets.
Under the partnership, the three firms will also aim to develop electric vehicles (EVs) and charging infrastructure customised for Indian market, the companies said in joint statement.
“Hyundai and Kia will invest a total of USD 300 million in Ola,” it said.
This will be the biggest combined investment as on date by the two automobile companies.
Commenting on the development, Hyundai Motor Group Executive Vice-Chairman Euisun Chung said, “India is the centrepiece of Hyundai Motor Group’s strategy to gain leadership in the global mobility market, and our partnership with Ola will certainly accelerate our efforts to transform into a smart mobility solutions provider.
Hyundai Motor Group expects to accelerate its transition from a car manufacturer into a smart mobility solutions provider, as the partnership initiatives will allow it to engage in all aspects across the entire mobility value chain including vehicle production, fleet operation and mobility services, it added.
Already, Hyundai has invested in car-sharing startup Revv, which had last year raised Rs 100 crore in a new funding round led by the South Korean auto major.
Revv plans to plans to increase its geographical footprint to 30 cities in India within a year from 11 cities.
Starting from this month, Hyundai Motor India has launched a pilot project offering customers to experience its products through a subscription model in partnership with Revv. The initiative will cover six cities — Delhi-NCR, Mumbai, Kolkata, Pune, Bengaluru and Hyderabad.