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Hyundai and Kia to invest in Ola

Hyundai Motor Group and Ola have announced a strategic partnership under which Hyundai and Kia will invest USD 300 million in the ride hailing platform.This will be the Groups’s biggest combined investment to date, as part of its continued efforts to become a Smart Mobility Solutions Provider.

The agreement will see the three companies collaborate on developing fleet and mobility solutions; building India-specific electric vehicles and infrastructure; as well as nurturing opportunities and offerings for aspiring driver partners with customized vehicles, on the Ola platform. The details of the agreement are as follows:

  • The companies will co-create solutions to operate and manage fleet vehicles, marking the 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, while vehicle maintenance and repair services are expected to enhance customer satisfaction. 
  • The companies will 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 all aspects across the entire mobility value chain ? including vehicle production, fleet operation and mobility services.

Euisun Chung, Executive Vice Chairman of Hyundai Motor Group said on the development “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,” He further added “Hyundai will proactively respond to market changes and persistently innovate to deliver greater value to our customers.”

Source: Press Release


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