Zooming into the clean mobility transformation two big wheels of the auto industry, Hyundai Motor Company and Kia Motors Corporation issued a statement about investing US $110 million (€100 million) which is to be ploughed into a new partnership with a UK-based electric vehicle startup.

Under this opportunity, the company Arrival will be developing electric commercial vehicles for the European market. Considering it Hyundai stated in a press release that Arrival will be helping Hyundai and Kia to meet the rapidly growing demand in Europe for

eco-friendly commercial vehicles, and accelerate the brands' transformation from carmakers to clean-mobility providers.

The contribution of Hyundai will be the highest as it intends to invest €80 million whereas Kia will be contributing €20 million.

This partnership will bring about new competitively priced small and medium-sized electric vans and other products for logistics, on-demand ride-hailing, and shuttle service companies. Moreover, Arrival’s scalable electric platform can be adapted for multiple vehicle categories and types that Arrival, Hyundai, and Kia will explore for the development of a range of Purpose Built Vehicles (PBV).

“The eco-friendly vehicle market in Europe is expected to grow rapidly due to the introduction of further environmental regulations," said Albert Biermann, President and Head of Research and Development Division for Hyundai Motor Group.

On the other hand, Arrival’s CEO Denis Sverdlov added “Arrival has created a game-changing product category -Generation 2 Electric Vehicles. Hyundai and KIA make world-class vehicles with uncompromising quality. This strategic partnership will empower our companies to scale Generation 2 Electric Vehicles globally.”