Kia and Hyundai make strategic investment in Arrival to co-develop electric commercial vehicles

Kia Motors Corporation and Hyundai Motor Company have announced a strategic investment of €100 million on a new partnership with Arrival, a UK-based electric vehicle startup.

Through the partnership, Kia and Hyundai plan to introduce competitively priced small and medium-sized electric vans and other products for logistics, on-demand ride-hailing, and shuttle service companies.

Arrival’s scalable electric platform can be adapted for multiple vehicle categories and types which Arrival, Kia, and Hyundai will explore for the development of a range of purpose built vehicles.

The partnership with Arrival will help Kia and Hyundai meet the rapidly growing demand in Europe for eco-friendly commercial vehicles, and accelerate the brands’ transformation from car makers to clean-mobility providers.

Albert Biermann, President and Head of the R&D Division for Hyundai Motor Group, said: “The eco-friendly vehicle market in Europe is expected to grow rapidly due to the introduction of further environmental regulations.”

“Through the joint development of electric commercial vehicles with Arrival, we will be able to gain a competitive advantage and progressively establish our leadership in the global eco-friendly vehicle market, with Europe at the forefront.”

Denis Sverdlov, CEO of Arrival, said: “Arrival has created a game changing product category, with Generation 2 Electric Vehicles.”

“Kia and Hyundai make world-class vehicles with uncompromising quality. This strategic partnership will empower our companies to scale Generation 2 Electric Vehicles globally.”