Hyundai forms JV with Aptiv to tap autonomous car market

South Korea’s Hyundai Motor will invest $1.6 billion in a joint venture to develop self-driving vehicle technologies with Aptiv to tap the autonomous car market, Reuters reported.
Hyundai and car technologyBMW and Daimler announced earlier this year that they would join forces on automated driving technology.

The Aptiv venture will be headquartered in Boston, with technology centers across the United States and Asia, including South Korea.

Hyundai Motor, Kia Motors and Hyundai Mobis will collectively contribute $1.6 billion in cash and $400 million in research and development resources and others, valuing the joint venture $4 billion, Hyundai Group and Aptiv said in a joint statement.

Dublin-headquarterd Aptiv, which will own 50 percent of the joint venture, will contribute its autonomous driving technology, intellectual property, and approximately 700 employees focused on the development of scalable autonomous driving solutions.

The new firm will begin testing fully driverless systems in 2020 and have a production-ready autonomous driving platform available for robotaxi providers, fleet operators and automakers in 2022.

Aptiv, which manufactures vehicle components and provides technology for self-driving cars, was formerly known as Delphi Automotive, which was split into Aptiv and Delphi Technologies in 2017.

Market research firm Navigant Research put Aptiv at No.4 among automated driving system companies, following Waymo, General Motors and Ford. Hyundai is not among the top 10 vendors, according to Navigant Research.

Aptiv said in its 2018 annual report that Hyundai Mobis was one of its competitors in safety and user experience segment, along with Bosch Group and Denso Corporation.

Its major customers include Hyundai Motor, GM, Volkswagen and Fiat.

Hyundai Motor said in February that it will invest 14.7 trillion won ($12.3 billion) in future technologies such as self-driving, connectivity and car sharing areas by 2023.

In March Hyundai Motor and Kia Motors Corp announced plans to invest $300 million in Indian ride-hailing platform Ola, following the $275 million that the pair invested in Singapore-based ride-hailing firm Grab last year.

In November, Hyundai Motor invested $250 million in Singapore’s ride-hailing firm Grab, raising its stakes in growing Southeast Asian markets.

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