The strategic move by Hyundai Motor marks a growing trends towards collaborating with strategic partners rather than develop technologies by itself.
On Thursday, Hyundai Motor Co stated it has invested an undisclosed amount in Singapore-based ride-hailing firm Grab marking its first ever foray into the fast burgeoning sector as it tries to diversify its sales following a slump in China.
Claiming the title of the biggest operator in the taxi hailing sector in the region, Grab has expanded its market reach to 8 Southeast Asian countries.
In a joint statement, the two firms stated both companies will jointly develop services in Southeast Asia, including one which capitalizes on Hyundai’s iconic eco-friendly models including the IONIQ Electric car.
Grab’s latest fundraising round had participants such as Toyota Tsusho, Didi Chuxing, and the SoftBank Group, said the firms.
On Wednesday, Hyundai had stated that it is considering building a car plant in either Vietnam or Indonesia.
Hyundai Motor’s interest in Southeast Asia came about when it faced indirect, unofficial bullying tactics flak from China following a diplomatic row between Beijing and Seoul over a threat faced by the latter from North Korea’s nuclear missiles.
South Korea firms are highly reliant on the Chinese market, but clearly they are now starting to diversify.