Hyundai €100m investment
HYUNDAI Motor Company and Kia Motors Corporation have announced a strategic investment of €100 million in a new partnership with Arrival, a UK-based electric vehicle start-up.
Through the partnership, Hyundai and Kia plan to introduce competitively priced small and medium-sized electric vans and other products for logistics and on-demand ride-hailing and shuttle service companies. Arrival’s scalable electric platform can be adapted for multiple vehicle categories and types which Arrival, Hyundai and Kia will explore for development of a range of Purpose Built Vehicles (PBV).
The partnership with Arrival will help Hyundai and Kia meet rapidly growing demand in Europe for eco-friendly commercial vehicles, and accelerate the brands’ transformation from car makers to clean-mobility providers.
Hyundai and Kia to use Arrival’s modular, scalable ‘skateboard’ EV platform
Founded in 2015, Arrival has production plants and R&D centres in the US, Germany, Singapore, Russia and the UK. The company’s strength lies in its ‘skateboard’ vehicle platform with a modular component structure, a cost-effective base which incorporates a battery pack, electric motor and driveline components.
Fully-scalable to accommodate multiple vehicle types, the platform can be used to accelerate vehicle development to meet diverse customer needs. Currently, Arrival is carrying out pilot projects with multiple logistics companies in Europe using cargo vans manufactured with the technology.
With the rapid global growth in online shopping, the volume of light commercial vehicles in urban areas has increased. The demand for eco-friendly commercial vehicles is expected to continue growing as environmental regulations tighten. From 2021, the EU will introduce the world’s most stringent vehicle emissions regulations, limiting each automaker’s fleetwide average CO2 emissions by around 27%, from 130 g/km to 95 g/km.
By working with Arrival, Hyundai and Kia plan to supply eco-friendly vans and buses – built in volume and based on Arrival’s platform – to European logistics companies and mobility companies that provide on-demand ride-hailing and shuttle services.
Hyundai and Kia recently announced the development of a fully-electric Purpose Built Vehicle (PBV). Hyundai presented its PBV concept as one of the smart mobility solutions at CES 2020 earlier this month. Kia also announced its plan to develop a PBV for shared-service companies and logistics companies.