South Korea’s largest automotive company Hyundai Motor had joined the joint venture of Volkswagen, BMW, Daimler and Ford – called Ionity, which is engaged in development and manufacture of electric vehicle charging points and equipment in Europe. This announcement was made by the joint venture on Monday.
The aim of the joint venture is to address concerns about the range of electric vehicles because of the lack of charging joints, which has been identified to be one of the major reasons for lower demand of electric vehicles. The joint venture Ionity, as a part of this mission, plans to set up 400 high-speed charging stations across Europe by the end of next year.
140 such charging stations across 14 countries in Europe have already been set up so far by the venture while it is developing another 50 stations.
“The participation of new investors in Ionity is a clear signal of trust indicating that the work of our young company is already bearing fruit,” Chief Executive Michael Hajesch said in a statement.
No financial details related to the participation of Hyundai in the joint venture were disclosed.
This announcement was made just days before the Frankfurt Auto Show IAA where critical importance is expected to be given to sustainable driving and electric cars. Mercedes-Benz is expected to display its fully electric van, Volkswagen its ID 3 electric vehicle and Porsche its Taycan electric sports car.
One of the major areas of investment by global auto companies currently is in the area of development of electric vehicles and huge sums of money are being poured by carmakers into this sector of the industry. On the other hand however, energy companies are reluctant to accept responsibility of the mass roll out of electric cars which has resulted in a shortage of easily available, fast and cheap electric charging points. This has been identified to be one of the major reasons for electric vehicles becoming popular among the masses. And for the auto companies, unless there is growth in demand of electric vehicles, development and manufacturing of electric vehicles would not be profitable.
(Adapted from Reuters.com)