Hyundai shares ended the overnight Asian session lower, as the South Korean car maker announced a partnership with on demand transport firm, Grab. Uber rival Grab, is now operating in eight south east Asian countries.
Hyundai shares ended the Asian Thursday trading session 0.32% lower. The South Korean car manufacturer is in the midst of a sales slump in China. The Grab agreement is part of its diversification plans and investment in growing car-related developments.
Investment made amid Grab’s fundraising round
Hyundai’s decision to invest in Grab comes as the ride hailing firm conducts its latest round of fundraising. Hyundai joins other firms, including Softbank and Toyota Tsusho, as investors in the growing business.
“Hyundai's strategic investment in Grab marks the beginning of an exciting new partnership between the two parties, bringing Hyundai one step closer to realizing its vision for future mobility,” said Hyundai’s chief innovation Officer, Dr. Young Cho Chi.
“Grab's expertise in the Southeast Asian market coupled with Hyundai's eco-vehicle leadership will bring innovative services to customers,'' Cho Chi added.
Grab, meanwhile, was upbeat about its future prospects.
“As we move into the next stage of Grab's growth, we look forward to collaborating closely with Hyundai to continue innovating new mobility solutions for Southeast Asia,” said Grab’s Co=-Founder and CEO, Anthony Tan.
“We are pleased to welcome Hyundai to our global network of strategic partners, and we are confident that we have an alliance of strong partners to push forward into Grab's next phase of long-term growth."
Hyundai looks to the future
This latest deal for Hyundai follows just a day or two after the South Korean car maker made some key announcements at the annual CES conference in Las Vegas.
Hyundai is partnering with Cisco and tech firm Aurora, to further develop its work on the connected car and autonomous vehicles.
“Hyundai Motor Group’s ongoing collaboration with top global technology companies is a testament to our ‘Open Innovation’ spirit that will prepare us for continued leadership as transportation and mobility undergo an unprecedented evolution,” said executive Vice President of Hyundai’s Auto Intelligence Division, Seung Ho Hwang.