Hyundai Invests in Ride-Hailing Service Grab

Hyundai Motor Co. said on Thursday it had invested in the Singapore-based ride-hailing firm Grab, in the South Korean automaker's first foray into the rapidly growing sector as it tries to diversify following a sales slump in China.

The companies will jointly develop services in Southeast Asia, including one utilizing Hyundai's eco-friendly models such as the IONIQ Electric, the two firms said in a statement.

“The convergence of Grab’s competitiveness in Southeast Asia and Hyundai’s green car technology will innovate the mobility service industry,” said Chi Young-cho, executive vice president and chief innovation officer of Hyundai’s strategy and technology division.

“Hyundai Motor will continually search for cooperation with car-sharing service providers armed with world-class technology to lead the global sharing economy markets.” The company did not share details of the amount of investment.

Established in 2012, Grab is also known as the Uber of Southeast Asia, boasting a market share of some 75 percent in the region.

Grab has expanded to eight Southeast Asian countries and has said that it is the biggest operator in the region's third-party taxi hailing and private-vehicle hailing sector.

Grab's latest fundraising round, which Hyundai has joined, already includes investors such as China's Didi Chuxing, Japan's SoftBank and Toyota Tsusho, the firms added.

"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. 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," said Anthony Tan, Group CEO and cofounder of Grab.

Hyundai said on Wednesday it is considering building a car plant in Southeast Asia, possibly in Indonesia or Vietnam.

The company's interest in the region has grown since a diplomatic row between Beijing and Seoul last year hurt South Korean firms that are highly reliant on the Chinese market.

The automaker also announced for the first time a self-driving technology partnership with Silicon Valley start-up Aurora earlier this month, a shift from its usual preference for developing the technology itself.

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