March 18, 2019
The South Korean auto brands said that the Ola partnership will mark their biggest combined investment till date
The funding comes as part the Hyundai’s continued efforts to become a smart mobility solutions provider
Ola said it was looking to create over 2 million livelihood opportunities in the mobility ecosystem by 2022
Hyundai said in November 2018 that it was looking to expand capacity at its plant near Chennai to 800,000 units
Hyundai Motor and its subsidiary, Kia Motors, have agreed to invest US$300 million in Ola Cabs, one of the world’s largest ride-hailing platforms. The South Korean auto manufacturer announced the strategic partnership on March 18 that will mark their biggest combined investment till date. The funding comes as part the group’s continued efforts to become a smart mobility solutions provider. The agreement will see the three companies collaborate on developing “unique fleet and mobility solutions”. The partners will build India-specific electric vehicles and infrastructure, while offering opportunities for aspiring driver partners with customized vehicles.
On the occasion, Euisun Chung, executive vice chairman of Hyundai Motor Group, said that India was the centerpiece of Hyundai’s strategy in the global mobility market. Bhavish Aggarwal, co-founder and chief executive of Ola, said that the tie-up will enable sustainable earnings for millions of driver-partners in future. The ride-hailing app already hosts over 1.3 million partners. Under the agreement, the companies will develop solutions to operate fleet vehicles, marking Hyundai’s debut into the industry, as it expands operations from automobile manufacturing and sales to total fleet solutions. India, with fast growth potential, offers attractive opportunities.
The companies said that the partnership will offer Ola drivers various financial services, including lease and installment payments, while market-specific vehicles as well as maintenance services will help boost customer satisfaction. Ola said it was looking to create over 2 million livelihood opportunities in the mobility ecosystem by 2022. Hyundai, India’s second largest car manufacturer, has posted steady growth. Hence, the firm said in November 2018 that it was looking to expand capacity at a plant near Chennai to 800,000 units from 700,000 units to keep up with the growing local demand. The plant also expects to launch over 10 Hyundai models in the next three years.