Hyundai Motor Group teamed up with Grab Holdings Inc. to expand their continuing strategic mobility service partnership. Moreover, the two companies’ business partnership expansion would remove the electric vehicle (EV) adoption barriers across Southeast Asian regions.
Overcoming EV Adoption Obstacles
Hyundai and its affiliates, including Kia Motors, would create initiatives and conduct pilots with Grab, a transportation solution company. In particular, they would help Grab delivery and driver-partners adopt EVs by lessening the process’s difficulties and entry barriers.
Furthermore, Hyundai and Grab would drop ownership costs and solve EV range anxiety issues. Results from an initial GrabRental EV pilot survey identified the top reasons holding back Grab partners from taking up EVs, which include costly rates and charging station shortages.
Thus, their expanded partnership would solve these issues, developing new business models, including battery-as-a-service, car-as-a-service, EV financing, and EV leasing. Hyundai and Grab would also jointly create a roadmap designed to accelerate Southeast Asia’s EV adoption.
This year, Hyundai and Grab would launch an initiative supporting Grab partners in adopting EVs. Both parties would also conduct pilot programs in Singapore while gradually expanding operations to Indonesia, Malaysia, and Vietnam.
Aside from piloting new business strategies, the two would conduct EV feasibility research as part of the roadmap. The study aims to understand EV ownership and adoption gaps and issues deeper.
After gathering insights, both parties would utilize the study’s findings to improve the domestic and global EV ecosystem. The study would also enable eco-conscious governments and related parties to enhance delivery and driver partners’ routines.
Strengthening Southeast Asian Ties
“With Grab having the largest driver network in the region and Hyundai’s comprehensive mobility solutions, we are confident that together we can help increase EV adoption and ultimately reduce carbon emissions,” said Kim Min-Sung, VP of Hyundai’s Innovation Division.
Kim also said that the two companies discovered the untapped Southeast Asian EV business opportunity thanks to their previous collaborations. Since their past partnership in 2018, they launched various EV pilots across Southeast Asia, including Indonesia and Singapore.
In addition to ongoing projects, Hyundai plans to increase cooperation with Grab, helping the mobility solutions provider become a future mobility market leader in Southeast Asia. Hyundai would also actively expand its Southeast Asian market presence, aiming to cultivate innovative mobility solutions.
For instance, Hyundai opened the Hyundai Motor Group Innovation Center in Singapore last October. The new facility involves an intelligent, small-scale EV manufacturing platform, exploring new business concepts to improve customers’ EV ownership experience.
Besides Southeast Asia, Hyundai has been boosting its operations in other regions, including Europe. In April, Hyundai collaborated with Uber to advance the European EV adoption, demonstrating their sustainable transit campaigns and zero-emission commitments.
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