Hyundai & Kia to invest $300 million in Ola
Hyundai and Kia are investing $300 million in mobility service provider, Ola. The strategic partnership includes the production of electric vehicles tailored to the Indian market, the establishment of charging infrastructure and the development of fleet and mobility solutions.
Under the framework of the Hyundai Motor Group (the Group), Hyundai Motor Company (Hyundai) and Kia Motors Corporation (Kia) will make their largest combined investment to date. With this strategic partnership with Ola, one of the world’s largest ride-hailing plaforms, the Group intends to accelerate their transition from being an automobile manufacturer to being a provider of mobility solutions. The partnership will cover all aspects of the entire value chain, including vehicle production, fleet operations and services.
Hyundai, Kia and Ola have also agreed to work together to develop vehicles and specifications that meet the needs of the ride hailing market (both users and drivers). The data collected during service operations should enable companies to continuously improve their vehicles. In addition, the Ola Drivers Partnership will offer a series of various financing options. From leasing to financing through installments, the companies plan to corner a larger section of the mobility market. In addition, maintenance and repair services are to be improved in order to increase customer satisfaction.
“India is the centerpiece 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,” said Euisun Chung, Vice Chairman of Hyundai Motor Group.
The Group has been extending towards India for some time now. Independently of this partnership, it became known last spring that Kia would also produce electric and hybrid vehicles at its future plant in Anantapur, India. And at the beginning of this year, there was first information that Hyundai intends to produce its fully electric Kona in India starting in the second half of this year. The plan is linked to an investment of 70 billion rupees (around 870 million euros) in Hyundai’s Chennai plant in the Indian state of Tamil Nadu.
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