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| Hyundai Motor India Managing Director Koo Young-key, left, shakes hands with Revv co-founders Anupam Agarwal, center, and Karan Jain after signing the strategic partnership deal in a Hyundai Motor quality center in India, Monday. / Courtesy of Hyundai Motor |
By Nam Hyun-woo
Hyundai Motor has signed a strategic partnership deal with India's No. 2 car sharing firm Revv, in its efforts to establish a beachhead in the country's car sharing service and advanced mobility markets.
According to Hyundai Motor, Monday, the partnership deal includes an undisclosed sum of investment and will be the first investment by an automotive company in Revv.
Revv was established in 2015 and is currently providing car sharing services in 11 major cities in India. The company quickly gained its market share with its vehicle subscription service, which is an emerging method of using vehicles.
In vehicle subscription services, a user pays a recurring fee for the right to use one or more automotive vehicles during the determined periods. Revv is the first Indian company to offer a vehicle subscription service.
Hyundai Motor said it chose Revv as its new global partner because the partnership will allow Hyundai to provide suitable vehicles to Revv, jointly develop mobility service platforms and carry out innovative marketing activities in India.
India's emerging services is expected to increase to $1.5 billion by the end of 2018 from $900 million in 2016, and is projected to expand to $2 billion by 2020.
India is one of the fastest growing car sharing markets in the world. It currently has 15,000 car-sharing vehicles and the number is expected to increase to 50,000 by 2020 and jump tenfold to 150,000 by 2022.
"Hyundai Motor India has been growing rapidly with its outstanding performance to become a strong market leader in India," Hyundai Motor India Managing Director Koo Young-key said in a statement. "We are just about to step forward and expand our business into future mobility with Revv."
In recent years, Hyundai Motor has been expanding its investments in mobility companies in and outside of Korea. The company invested in Singapore-based ride-hailing firm Grab, China-base e-scooter maker Immotor, Australia's peer-to-peer car sharing firm Car Next Door.
Hyundai Motor recently invested in Mesh Korea, which operates a last-mile logistics platform Vroong, and the auto giant is operating its own car sharing service in the Netherlands using its Ioniq electric vehicles.
In India, Hyundai Motor was the No. 2 car brand in July, retailing more than 320,000 vehicles, up 7.5 percent from the previous year.
"India is a very important market for Hyundai Motor and we are aware of a leading role in changing the market trend is required for us," a Hyundai Motor official said. "The company will continue making various investments and signing partnerships not only in the automobile industry now but also for the future."
