Hyundai Motor Group Strengthens Strategic Partnership with 'Grab'... Expanding EVs in Southeast Asia

[Asia Economy Reporter Yu Je-hoon] Hyundai Motor Group is partnering with the mobility platform 'Grab' to expand the adoption of electric vehicles (EVs) in Southeast Asia. Both parties plan to jointly develop a roadmap to address obstacles to EV adoption, such as high costs and insufficient charging infrastructure.

Hyundai Motor Group announced on the 22nd (local time) that it will strengthen its strategic partnership with Grab. Grab is the largest mobility platform in Southeast Asia, comparable to Uber in the Gumi region.

According to a survey conducted by Grab Rentals in 2020 targeting drivers, the biggest obstacles to expanding EV adoption were identified as ▲high costs ▲lack of charging infrastructure ▲long charging wait times.

Accordingly, Hyundai Motor Group and Grab will build a joint roadmap related to EV adoption and pilot new EV business models such as Battery as a Service (BaaS), Car as a Service (CaaS), and EV financing. These pilot projects are expected to start in Singapore this year and expand to Indonesia, Vietnam, and other countries.

As part of the roadmap development, both companies plan to conduct feasibility studies related to EV businesses. Additionally, they intend to strengthen cooperation in new business areas and emerging technologies, such as smart city solutions.

Since signing a strategic partnership in 2018, Hyundai Motor Group and Grab have been exploring the expansion of EV businesses in Southeast Asia, starting with Singapore in 2019 and Indonesia last year. Hyundai Motor Group first deployed 200 Kona Electric vehicles with Grab Singapore and introduced the Ioniq at Soekarno-Hatta International Airport in partnership with Grab Indonesia.

Kim Min-sung, Head of Hyundai Motor’s Open Innovation Business Strategy Team (Executive Director), said, "Through cooperation since 2018, Hyundai Motor Group and Grab have confirmed the potential of the EV business in Southeast Asia. Further collaboration with Grab is expected to become a key driver leading the future mobility market in Southeast Asia."

Russell Cohen, Executive Director of Grab, also stated, "Although EVs are in the early stages in Southeast Asia, we will collaborate with partners and governments to accelerate adoption. Once government incentives for EVs are implemented and essential infrastructure such as charging stations is established, it will become a model case for EV adoption."

Meanwhile, Hyundai Motor Group has recently been leading mobility innovation in the Southeast Asian market. In October last year, it held a groundbreaking ceremony for the Hyundai Motor Group Innovation Center Singapore (HMGICS). HMGICS is expected to serve as a testbed for experimenting with new mobility services.