Hyundai Motor Company and Kia Motors Corporation furthered its clean mobility strategy through strategic investment of €100 million in a new partnership with the British autonomous EV startup, Arrival.

KIA and Hyundai expect to enter the market for small and medium-sized commercial EVs to supply logistics, ride-hailing, and shuttle service companies by using Arrival's modular electric platform. The strategic investment is in the form of a partnership where Hyundai contributes 80% and KIA 20% of the total investment.

Albert Biermann, President and Head of Research and Development Division for Hyundai Motor Group, said: “Through the joint development of electric commercial vehicles with Arrival, we will be able to gain a competitive advantage and progressively establish our leadership in the global eco-friendly vehicle market, with Europe at the forefront.”

Arrival’s CEO and founder, the Russian entrepreneur Denis Sverdlov added: “Arrival has created a game changing product category - Generation 2.0 electric vehicles. Hyundai and Kia have been making amazing vehicles with uncompromising quality and share our vision for an electric mobility future. Our Strategic Partnership with Hyundai and Kia means we will scale Generation 2 electric vehicles globally and importantly - in the very near future.”

The Royal Mail joined other postal companies in testing electric vehicles as part of their fleets. The Royal Mail this week announced a pilot program with nine range-extended electric vehicles supplied by British Autonomous Electric Vehicles start-up Arrival. UPS and Arrival entered into a similar arrangement in May where the privately owned company will test 35 electric postal delivery vans in London and Paris. The Royal Mail operates a fleet of 49,000 vehicles through-out the UK. The pilot program will operate 3.5, 6 and 7.5-ton electric vans from its Mount Pleasant depot in London, tasked with the collection of mail from large sites. The electric van has a pure electric range of 100miles (160km) at which point a generator will charge the battery, similar to the BMW i3 REx technology. The Arrival electric van includes an Advanced Driver Assistance System and is autonomous ready. Previously the Royal Mail contracted with Peugeot to buy a 100 pure electric vans. Arrival is based in Banbury and previously know as Charge Auto is instrumental in the creation of the Roborace which forms part of the Formula E Championship.