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Forbes
27-05-2025
- Automotive
- Forbes
Hyundai Launches $91 Million VC Fund For Early-Stage Startups
Cars on display at a Hyundai Motor Company dealership. GETTY South Korean automobile giant Hyundai Motor Group, controlled by billionaire Euisun Chung, announced Monday that it has launched the third fund of its corporate venture capital arm ZER01NE, targeting early-stage startups with a fund size of 125 billion won ($91.4 million). Through ZER01NE, pronounced 'Zero One,' Hyundai said it plans to invest in strategic areas such as AI, robotics, cybersecurity, and energy technologies. Titled Fund III, the fresh capital is drawn from ten of Hyundai's 28 main affiliates, including Kia Corp., Hyundai Motor Securities, logistics provider Hyundai Glovis, and automobile parts manufacturers Hyundai Wia and Hyundai Mobis. 'This fund reinforces the Group's position as a leading strategic investor in transformative technologies,' said Keith Noh, vice president and head of ZER01NE group at Hyundai Motor Group, in a statement about the launch. 'By deepening collaboration with innovative startups, we aim to generate meaningful synergies across our affiliates and accelerate our future-ready business initiatives.' Across its previous two funds, including Fund II (valued at 80.5 billion won) and Fund I (10 billion won), ZER01NE has invested in more than 105 startups, which it claims have led to 'over 200 collaboration cases' within the larger Hyundai group. One example of such collaboration, according to Noh, is EV battery pack remanufacturer Poen. Backed by ZER01NE's first fund, Poen has served as a partner for the group's battery warranty or general repairs. As of 2024, the startup had processed warranty repairs for a total of 1,500 units across 12 of Hyundai's models. Representatives from Hyundai Motor Group and ZER01NE. Courtesy of Hyundai Founded in 2018, ZER01NE began as a 'creative talent platform' for Hyundai, which the automobile giant described at the time as 'an amalgam' of CVC and 'open innovation.' Apart from its investment funds, ZER01NE operates a startup accelerator that has spanned 195 companies to date. Graduates from the accelerator are eligible for investment based on factors such as their growth potential and long-term partnership opportunities – even if their solutions may not be immediately relevant to Hyundai. 'Innovation is fundamental to a company's survival, and achieving this innovation requires the best talent,' added Noh in emailed comments to Forbes. 'In the past, companies relied on talent they directly hired to drive innovation, but now it is essential to also collaborate with external talent for a company's survival. From this perspective, ZER01NE has been operating as an open innovation platform with the vision of attracting the best talent, and this vision has remained unchanged since its launch.' ZER01NE's portfolio includes Clobot, an autonomous robot builder that debuted on the Kosdaq last October; and Seoul and San Francisco-based MakinaRocks, which develops machine learning platforms for manufacturing processes. MakinaRocks last raised $10 million in a 2020 Series A funding round that included participation from other major CVCs, including LG Technology Ventures and Applied Ventures, an arm of Nasdaq-listed manufacturing giant Applied Materials. The introduction of Fund III builds on Hyundai's 15-year history in venture investing. In 2011, Hyundai unveiled its first CVC unit, Hyundai Ventures, in Silicon Valley; six years later, in 2017, the group rebranded this unit as the Hyundai Center for Robotic-Augmented Design in Living Experiences, known as Hyundai CRADLE. While ZER01NE mainly operates in Korea, CRADLE has five global offices, including bases in Berlin, Beijing and Singapore. Additionally, unlike ZER01NE, which invests directly in startups, CRADLE also functions as a fund of funds. In January, it served as an anchor investor alongside Kia in the $200 million fund launch of Factorial Funds, a Menlo Park, California-based VC firm that was an early backer of AI giants Anthropic and Perplexity. In recent years, a wave of storied Korean conglomerates has made inroads into venture investing. The government's relaxation of regulations on establishing CVCs in 2021 spurred the creation of new firms, such as Hyosung Group's Hyosung Ventures and GS Holdings' GS Ventures in 2022. In 2023, South Korea's Ministry of Trade, Industry and Energy announced the formation of a CVC Alliance with 42 firms, while pledging to create a fund pool in excess of 8 trillion won ($5.7 billion) by 2025. Earlier in May, automobile parts giant Hankook & Company Group – one of Asia's largest tiremakers by sales – established its own CVC with a capital commitment of 15 billion won ($10.7 million). Named Hankook & Company Ventures, the CVC will invest in startups from seed to Series B, according to Hankook & Company, spanning AI, robotics and other deeptech sectors.
Indian Express
21-05-2025
- Automotive
- Indian Express
Hybrids vs EVs: Honda's pivot to hybrids is now part of a growing trend
Honda Motor Co., Japan's second-largest automaker, said on Tuesday that it was moving to scrap its previous goal for electric vehicles (EV) to be 30 per cent of its cumulative global vehicle sales by 2030, citing slowing sales of EVs in the US. The decision by the Tokyo-based carmaker ties in with the broader trend being seen across markets, even outside of the US. Carmakers across markets have been pivoting away from EVs (essentially battery electric vehicles) towards hybrids. Honda is part of that trend. Honda Motor Chief Executive Toshihiro Mibe termed the decisions 'a switch in the planned course,' while asserting that the long-term shift toward electrification remained unchanged, just 'pushed back in time'. Incidentally, last year, Honda was forced to jettison a pact with American carmaker General Motors that aimed to build a line of cheaper EVs in the US. Also, talks that began late last year to merge the operations of Honda and Nissan Motor Corp, as well as smaller automaker Mitsubishi Motors Corp, collapsed earlier this year. From Honda's perspective, this venture was also aimed at jointly harnessing rival Nissan's EV expertise. Hybrids Gain Momentum Since late 2023, an EV slowdown is getting more pronounced in the US, with Tesla, the market leader with over half of all EV sales in that country, consistently reporting its lowest quarterly earnings in over two years. Other American car manufacturers too are beginning to right-size their EV ambitions, with General Motors distancing itself from its earlier production target for EVs last year, while Ford has belatedly stepped up its hybrid focus since mid-2024. In the Indian market too, there are signs of a subtle pivot that automakers are already making, in line with the trends being seen in developed markets. Players with a keen interest in the EV segment, including Mahindra & Mahindra and Hyundai Motor, both strong proponents of battery electric vehicle technology, are learnt to be exploring the hybrid option to diversify their offerings. Hyundai Motor India, the country's second-largest carmaker, looks set to enter the hybrid vehicle segment in the coming three years and is said to be looking to add a hybrid powertrain as part of its electrified future in India. A Reuters report quoted Euisun Chung, the executive chairman of Hyundai Motor Group, telling employees in India that hybrids and electric vehicles will be critical parts of its portfolio in the country. Chung had addressed a town hall in April 2024, offering a long-term strategy for the Indian market. Hyundai group company Kia too has committed to introducing hybrid vehicles in India Triggers For Shift Away From EVs The one reason for the waning enthusiasm in EV in the US is President Donald Trump and his lack of enthusiasm for electric vehicles. Japanese automakers, alongside most others, have been scrambling to adapt to the policy switch by Washington DC. 'The environment surrounding the automobile industry is changing day by day. Uncertainty in the business environment is increasing, due particularly to the slowdown in the expansion of the EV market due to several factors, including changes in environmental regulations,' Honda said in a statement Tuesday. Honda chief Mibe did not give a specific timeline for a new course on electrification, but said that Honda will be more aggressive in producing hybrids instead. Beyond the Trump factor though, there are at least three structural issues that are playing out in most global markets, with the exception of perhaps China, which is triggering a gradual consumer pivot from battery electric vehicles to hybrids. The three broad factors blunting EV penetration are increasing concerns around EV capital costs, especially triggered by lower price realisation for used EVs; uncertainties over government policies on EVs; and a growing shortage of charging stations, especially fast chargers. Overcoming these challenges could predictably take some time. Another issue that EV makers such as India are experiencing is that the so-called first adopters – the ones open to experimenting with a new technology and making a switch – are slowly thinning out, and new customers are increasingly reluctant to shift to EVs. This is largely due to issues such as perceived inadequacy of charging infrastructure and comparatively higher prices. In its latest annual Electric Vehicle Outlook released in 2024, BloombergNEF lowered its global battery-electric sales projections by 6.7 million vehicles through 2026. Globally, BloombergNEF projects that over the next four years, electric car sales will grow at an average of 21 per cent per year in the Economic Transition Scenario, compared to an average of 61 per cent between 2020 and 2023. The charging problem, which is now one of the major deterrents to the penetration of EVs in global markets, is an emerging problem in India too. All this is happening at a time when there is promise of a genuine breakthrough in existing battery technology, with Chinese battery manufacturing leaders BYD and CATL announcing versions of the lithium-ion batteries that promise incredibly faster charging times. Anil Sasi is National Business Editor with the Indian Express and writes on business and finance issues. He has worked with The Hindu Business Line and Business Standard and is an alumnus of Delhi University. ... Read More
Forbes
14-04-2025
- Automotive
- Forbes
Hyundai Shifts Gears In India With EV Drive
Euisun Chung. This story is part of Forbes' coverage of Korea's Richest 2025. See the full list here. Leveraging its nearly three-decade-long track record in India, auto billionaire Euisun Chung's Hyundai Motor Group listed its Indian unit last October, raising $3.3 billion in the country's largest-ever IPO. ss Hyundai Motor India, which contributes around 15% to the parent company's global sales by volume, has gained traction from India's rising middle class with popular models such as the Creta, a midsize SUV. Despite the IPO buzz, shares are down 13% since the listing. The Indian unit reported a dip in sales and an 18% drop in net profit for the third quarter ended December. In February, it ceded its spot as India's second-largest automaker by domestic sales to Mahindra & Mahindra, controlled by billionaire Anand Mahindra. To rev things up, Hyundai India has embarked on an EV drive. After launching the Ioniq 5 premium SUV in 2023, it introduced the electric version of Creta in January. Four additional EV models are due by 2030, when it hopes to have 600 fast-charging EV stations installed across the country, up from 50 currently. In its home market, Hyundai may benefit from South Korea's emergency relief measures to protect its auto sector against U.S. tariffs. Announced in April, these measures include increasing policy financing support by 2 trillion won ($1.4 billion) to 15 trillion for 2025, lowering taxes on new purchases and extending EV subsidies.
Yahoo
30-03-2025
- Automotive
- Yahoo
Hyundai's 'first-ever, 3-row' EV under production at new Georgia plant
Hyundai's "first-ever, three-row" electric vehicle is under production at the new Hyundai Motor Group Metaplant America (HMGMA) that celebrated its grand opening in Ellabell, Georgia, on Wednesday. The Bryan County vehicle assembly and battery plant "will produce up to 500,000 electric and hybrid vehicles annually for Hyundai, Kia and Genesis brands," Hyundai Motor Group said in a media release. One of the vehicles under production at the massive new plant about 20 miles outside Savannah is the IONIQ 9, Hyundai's first three-row SUV, Electrek reports. A photograph shared by Hyundai shows employees at the plant working on a green-framed IONIQ 9. "Hyundai Motor Group Metaplant America not only represents the Group's advanced manufacturing capabilities and commitment to innovation, but also our investment in relationships with our partners and communities right here in Georgia," Euisun Chung, executive chair of Hyundai Motor Group, said in a statement. Hyundai To Invest $20B In Us Manufacturing "With the rich history of craftsmanship and manufacturing in this community, together with the talented workforce at HMGMA we are building the future of mobility with America, in America," he said. Read On The Fox Business App Hyundai is the world's No. 3 automaker when including Kia Motors, in which it owns a 35% stake, according to Reuters. IONIQ 9s are said to be hitting the road this spring, according to the automaker's website. Kia vehicles will represent 40% of the Georgia facility's total production, Kia CEO Song Ho-sung told reporters on Wednesday. Trump Says He Will Introduce 25% Tariffs On Autos, Pharmaceuticals And Chips Plans were originally to produce 300,000 electric vehicles at the plant, but were upgraded with the addition of hybrid cars to the factory's production lines at a time when demand for pure electric cars is cooling and President Donald Trump's administration is threatening to end EV subsidies. The changes represent part of the $21 billion in investments announced by Trump and Chung at the White House earlier this week. "Through this $21 billion commitment to drive U.S. manufacturing growth, the Group anticipates it will create 14,000 new direct full-time jobs in the U.S. by 2028," Hyundai Motor Group said in a media release. Trump announced 25% import tariffs on cars and auto parts on Wednesday, a move that may hurt companies, especially Asian automakers, which are among the largest vehicle exporters to the U.S. After Mexico, South Korea is the world's largest exporter of vehicles to the United States, followed by Japan, according to data from S&P. Kia Motors currently produces most of its hybrid cars, including its Sportage hybrid crossover, in South Korea. Click Here To Read More On Fox Business Song said the new U.S. factory would help achieve Kia's target of boosting U.S. sales to 1.25 million vehicles a year, up from 850,000 currently. The facility is an "intelligent manufacturing plant," meaning "all processes of production—order collection, procurement, logistics and production—are optimized utilizing AI and data. The innovative manufacturing system also helps create a human-centered work environment with robots assisting human workers," Hyundai said in a media release. Reuters contributed to this report. Original article source: Hyundai's 'first-ever, 3-row' EV under production at new Georgia plant Sign in to access your portfolio
Yahoo
29-03-2025
- Automotive
- Yahoo
Hyundai inaugurates new EV plant in US
Hyundai Motor Group (HMG) held the Grand Opening ceremony for its new electric vehicle (EV) plant in the US state of Georgia this week, hosted by the group's executive chairman Euisun Chung. The event was held in the week that US President Donald Trump announced that his government plans to impose duties of 25% on vehicles and components imported into the US from the 2nd April. The South Korean automaker completed construction of its third vehicle plant in the US, the Hyundai Motor Group Metaplant America (HMGMA), in the fourth quarter of last year. The facility has a production capacity of 300,000 battery electric (BEV) and plug-in hybrid (PHEV) vehicles per year. HMG began producing the Ioniq 5 BEV at the plant at the end of 2024, followed by the introduction of the new Ioniq 9 model in the first quarter of 2025. Production will be ramped up further in 2026 with the introduction of a Kia-branded model. The inauguration this week was intended to underscore HMG's commitment to manufacturing in the US, where it has invested over US$20bn so far and created 570,000 local jobs. Earlier this week the company confirmed it plans to accelerate production localization in the US, with the announcement that it plans to invest a further US$21bn in the country in the next four years. This will include expanding production capacity at the HMGMA facility to 500,000 units per year. With the new plant, HMG now has a production capacity of 1 million vehicles per year in the US. The group sold a total of 1.7 million Hyundai, Kia and Genesis-branded vehicles in the US last year, of which around 1.15 million units were imported from South Korea At the event, Euisun Chung told his audience: "Standing here today, I can say I have never been more confident about building the future of mobility with America, in America. Hyundai has come to Georgia to stay, to invest and to grow.' "Hyundai inaugurates new EV plant in US" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
