June 26, 2019

Hyundai and Kia Invest $US300m in India’s Ola Mobility Service Provider

Hyundai Group is to invest $300 million in Ola
Hyundai Group is to invest $300 million in Ola

Hyundai Motor Group and Ola have announced a strategic partnership under which Hyundai and Kia will make their biggest combined investment to date.

The agreement will see the three companies collaborate on developing fleet and mobility solutions; building India-specific electric vehicles and infrastructure; and developing opportunities and offerings for driver partners with customised vehicles, on the Ola platform. Hyundai and Kia will invest a total of $US300 million ($AU423.6 million) in Ola.

“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, Executive Vice Chairman of Hyundai Motor Group. “Hyundai will proactively respond to market changes and persistently innovate to deliver greater value to our customers.”

The companies have agreed to co-create solutions to operate and manage fleet vehicles, marking Hyundai Group’s first foray into the industry, as they expand operations from automobile manufacturing and sales to total fleet solutions.

The partnership will offer Ola drivers various financial services, including lease and instalment payments.

“We’re very excited about our partnership with Hyundai, as Ola progresses to build innovative and cutting-edge mobility solutions for a billion people,” added Bhavish Aggarwal, Co-founder and CEO of Ola. “Together, we will bring to market a new generation of mobility solutions, as we constantly expand our range of offerings for our consumers.

“This partnership will also significantly benefit driver-partners on our platform, as we collaborate with Hyundai to build vehicles and solutions that enable sustainable earnings for millions of them, in the time to come.”

Hyundai, Kia and Ola have also agreed to coordinate efforts to develop cars and specifications that reflect the needs of the ride-hailing market (both users and drivers). Data accumulated during service operation will allow the companies to make constant vehicle improvements to better meet local needs and specifications.

Hyundai Motor Group expects to accelerate its transition from a ‘car manufacturer’ into a ‘Smart Mobility Solutions Provider’, as the partnership’s initiatives will allow it to engage in areas such as vehicle production, fleet operation and mobility services.