Yahoo Finance Hyundai raises stakes in auto tech with $250m investment in Grab
Hyundai Motor has raised its stake in Southeast Asia's tech market with a new $250m (£189.9m) investment in Singaporean auto tech firm Grab.
Hyundai and its affiliate company Kia will establish a partnership with Grab to launch a series of electric vehicle pilots across Southeast Asia from 2019.
This is the biggest investment to date for the South Korean motor company, and the second into Grab after a fundraising round in January.
Hyundai historically has shied away from partnerships of this kind, preferring to develop its own technology in-house.
However, the company is pushing for new revenue streams after disappointing financial results in Q2 2018, with a drop of 14pc in quarterly net profit, missing estimates by a substantial margin due to a slowdown in sales in the US and China.
Dr Youngcho Chi, chief innovation officer at Hyundai Motor, said: "As home to one of the world's fastest growing consumer hubs, Southeast Asia is a huge emerging market for [electric vehicles]."
The companies also plan to work with local governments and infrastructure players to improve the access to quick-charge stations in the region.
The partnership also plans to conduct research into how these electric cars can be more efficiently deployed under hot and humid climate conditions.
In August, Grab announced a partnership with Singapore's energy utilities provider, SP Group, to use its charging network for electric cars.
The additional investment brings Grab’s current fundraising to $2.7 billion (£2.05bn) raised. Other investors include Microsoft, Toyota, Goldman Sachs and Citi Ventures.
Grab is on track to raise over $3 billion (£2.27bn) by the end of this year.
