Thursday, June 24

Hyundai admits being in talks with Apple over electric vehicle

Hyundai has confirmed that it is in preliminary talks with Apple for an electric vehicle and battery project. This is one of the very first public statements that the development of what could be an “Apple Car” … is well underway.

After information leaked, Hyundai confirmed it was in talks with Apple over an electric car project

After the information was leaked, Hyundai confirmed that it was in discussions with Apple for an electric car project // Gamesdone: Unsplash – Laurenz Heymann

It’s official, Hyundai and Apple are in the preliminary stages of a possible collaboration for an electric vehicle and battery project. This information comes directly from the Korean giant, forced to speak out after a local news channel, the Korea Economic Daily TV, indicated that it was in discussions with Apple over the design of an electric car at the horizon 2027. The media also explained that the two groups could develop batteries in the American factories of Hyundai or its subsidiary Kia.

At the end of 2020, Reuters had also mentioned Apple’s electric car, believing that the group was making progress on this file, and that a first model, equipped with “revolutionary” battery technology, could arrive on the market this time from 2024. If the time estimates of the Korea Economic Daily TV and Reuters diverge, their respective information nevertheless points in the same direction: the Apple Car is well under development.

Apple, he remains silent as a grave

« Apple and Hyundai are in talks, but as [les pourparlers] are at an early stage, nothing has been decidedHyundai therefore admitted in a statement released today. An announcement that had the effect of inflating the share price of the car manufacturer by 25%. As indicated Reuters, Apple remains perfectly silent, preferring to keep, as usual, the utmost discretion. The British press agency nevertheless explains that Apple is in talks with other car manufacturers… something Hyundai has not extended.

In a document filled out later for administrative purposes, Hyundai explains for the rest having received “requests for cooperation for the joint development of autonomous electric vehicles from various companies“. Apple’s name is not directly mentioned there. A discretion that the Korean group may subsequently respect to the letter so as not to jeopardize a potential agreement with Apple.

Apple’s entry into the electric vehicle market could look like an uppercut for Tesla. To achieve this, the Cupertino giant will however have to partner with car manufacturers to assemble a vehicle of its own. Hyundai is clearly among the candidates. The two brands are already collaborating in the software field with CarPlay.

For Apple, the interest of a possible agreement with Hyundai would be to be able to count on a brand known for its reliability, while reducing the costs compared to a partnership signed with an American firm, while Hyundai could take advantage of it to compensate its losses due to the COVID-19 pandemic. The number of vehicles sold by the manufacturer has indeed fallen by 15% between 2019 and 2020.

It remains to be seen when Apple will emerge from its silence. “We still strongly believe that Apple will finally announce a strategic partnership for electric vehicles in 2021“, Say analysts from the Californian firm Wedbush Securities. According to them, this possible announcement would allow Apple to lay the foundations for its entry into the electric car market, probably between 2024 and 2027.

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