Hyundai, Kia invest about Rs 2,000 crore in Ola

The partnership between Hyundai-Kia and Ola will see them collaborate on the development of EVs and charging stations for the India market and more.

Published on Mar 19, 2019 10:35:00 AM

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Hyundai Motor Group has announced a partnership with Ola, the ride-hailing service, to collaborate on developing EVs and electric vehicle infrastructure in the Indian market. The collaboration involves an USD 300 million (about Rs 2,000 crore) investment by Hyundai and Kia (which are part of Hyundai Motor Group) in Ola.

Besides developing a unique, all-electric fleet and building charging infrastructure for India, the partnership will also see the three companies coordinate efforts to develop India-specific cars by gathering driver and passenger data. In addition, it will also provide opportunities for Ola drivers in terms of financial services, while also providing further ease of maintenance and repair services.

The tie-up between Hyundai, Kia and Ola marks the Koreans brand’s first formal foray into the fleet market and is meant to elevate the brand from a manufacturing and sales company to a mobility solutions provider.

In the recent past, Kia made a push for electric mobility in Andhra Pradesh by providing the state government with an EV charging station and three electrified Kia Niros. The Hyundai Kona EV is likely to make its way to the Indian market this year and the Nexo FCV may also follow.

On the internal combustion engine side of things, Kia will launch the production-spec SP2i SUV in the coming months to rival the Hyundai Creta, while Hyundai will be bringing its compact SUV – currently codenamed QXi – to take on the Maruti Suzuki Vitara Brezza, Tata Nexon and Mahindra XUV300.

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