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Hyundai Motor and Kia Motors today announced a € 100 million (US $ 110 million) strategic investment in a new partnership with Arrival, a UK-based electric vehicle start-up. In the second half of the last decade, governments, ecosystems, and other organizations around the world are constantly pushing the transition from carbon-producing entities to carbon-neutral. This movement basically controls the changes in the environment as they occur around the world.
The move is also affecting the world’s largest car and luxury car manufacturers. Luxury car manufacturers are currently transforming processes to shift technology and innovation to battery production or subcontracting. These are extremely environmental friendly in the current fleet of fossil fuel-based vehicles running on diesel and gasoline, which have a negative impact on the environment. This strategy is very important if these companies are going to be carbon neutral. The electric vehicle market is expected to reach US $ 1.5 billion by 2025, with 97 million vehicles sold by 2025.
Diesel, gasoline and electric vehicle registration record: In December 2019, diesel vehicle registrations fell by about 19% compared to December 2018. Gasoline registrations grew 2.6% in December 2019, but in December 2018, gasoline market share dropped from 63.8% in December 2018 to 63.3% in December 2019. This makes clear how the number of registered electric vehicles has enlarged. In December, the market share of these vehicles increased. Not only throughout the year
December BEV records increased 220.7% year-over-year and BEV market share increased significantly from 1.1% to 3.3%. Similarly, PHEV records increased 21.8% year-over-year and HEV records increased 34.4% year-on-year. The biggest surprise was the soft hybrid electric vehicle. MHEV diesel registrations increased significantly by 438.4% and MHEV gasoline registrations increased 265.9%.
How will the investment of Hyundai and Kia affect the industry: On January 16, 2020, UK electric vehicle developer Generation 2. Arrival, issued a press release announcing that Hyundai and Kia, two Korean major car companies, are worth the investment. At € 100 million, the company is the UK’s most valuable new unicorn company.Arrival, a technology company focused on developing second-generation electric vehicles. They also specialize in overcoming legacy technologies that can develop high-power vehicles at the same cost as traditional vehicles running on fossil fuels. The company has more than 800 experienced employees in areas such as software, technology, design, products, and automotive. This investment marks the beginning of a significant partnership between automakers to accelerate the commercialization and adoption of electric vehicles around the world. Hyundai and Kia will use Arribo’s key equipments to help them to reach their goal of transforming their advance to creating mobility services and building electric vehicles with cleaner fuels. Hyundai and Kia use the arrival micro factory and programming features. But the arrival will benefit from the global partnership and the global presence of the original equipment manufacturer (OWM) and its economies of scale. This will help accelerate the “two-way” policy that Hyundai has adopted to bring carbon neutral energy and battery technology to the commercial vehicle market. This move by Kia and Hyundai Motors came after other carmakers around the world made significant progress in moving to electric vehicle space. Recently, in the United States, Ford Motor Company announced a partnership.