Kia and Hyundai invest £85m in Arrival for electric-vehicle development

Korean carmaker takes big stake in UK-based commercial-vehicle company to accelerate the adoption of electric vehicles in Britain and beyond

Arrival Royal Mail concept

Kia and Hyundai have announced a €100 million (£85 million) investment in UK-based electric-vehicle company Arrival, to help accelerate the adoption of electric commercial vehicles worldwide.

The partnership will see Kia and Hyundai use Arrival’s ‘skateboard’ platform – a base that can take multiple body shapes and different forms – to create new, purpose-built electric vehicles. In return, Arrival will benefit from Hyundai and Kia’s global reach and economies of scale.

The news comes just days after Kia announced its ‘Plan S’ – a proposal that'll see it build 11 new electric vehicles by 2025.

Hyundai’s president and head of research and development, Albert Biermann, said: “The eco-friendly vehicle market in Europe is expected to grow rapidly due to reinforcement of environmental regulations. 

“Through the joint development, we will be able to gain a competitive advantage and progressively establish our leadership in the global eco-friendly vehicle market.”

Arrival claims its electric vans are priced “the same, or less than” internal-combustion-engined vehicles. Currently, over 90% of commercial vehicles in the UK are diesel-powered, but their predictable usage patterns – and ability to charge overnight – mean that light vans and trucks are perfect candidates for electric propulsion.

Avinash Rugoobur, Arrival’s chief strategy officer, said: “Our complementary expertise will allow us to rapidly design, build and roll out vehicles together. Accelerating electric vehicle adoption is good for everyone – for people, business and the planet – and we are pleased to undertake this mission with our partners Hyundai and Kia”.

Most Popular

Top 7 best hybrid and electric sports cars 2021
Taycan
Best cars

Top 7 best hybrid and electric sports cars 2021

Bringing thrills and performance with their powerful electric motors, these are the best electric and hybrid performance cars to buy in the UK in 2021
22 Jul 2021
Are electric cars expensive to insure?
Pros and cons of electric company cars - illustration
Your questions answered

Are electric cars expensive to insure?

Everything you need to know about insuring an electric car, including how expensive it is and why
19 Jul 2021
2021 Audi Q4 e-tron and Q4 e-tron Sportback: specs and prices
Audi Q4 e-tron
Audi Q4 e-tron

2021 Audi Q4 e-tron and Q4 e-tron Sportback: specs and prices

The pure-electric Audi Q4 e-tron and Q4 e-tron Sportback are on sale now, with prices starting from £40,750 for the regular SUV and £42,250 for the Sp…
5 Jul 2021