South Korea’s top carmaker Hyundai Motor Group plans to raise its stake in Korean autonomous driving technology startup 42dot Inc. and invest about 400 billion won ($308.19 million).
As per reports, Hyundai Motor Group will take over a 36.19% stake of CEO Song Chang-hyun. The group is buying most of the shares of 42dot in a strategic move to intensify its competitive edge in self-driving technology. The transaction is said to culminate in August.
Hyundai Motor Group, which houses Hyundai Motor Co and Kia Corp, holds a combined 20.4% stake in the startup, as of 2021, according to 42dot Inc’s regulatory filing.
The Seoul-based automaker plans to secure a projected 12% of the global electric vehicle market and introduce more than 31 electric models through 2030. In March, the company floated plans to invest about 95.5 trillion won through 2030, including autonomous driving technology and electric-vehicle (EV) businesses.
42dot, founded in 2019, was valued at 600 billion won ($461.2 million) in October last year. The autonomous driving solution startup has developed Transportation-as-a-Service (TaaS) technology for ride-sharing and self-driving vehicles. Hyundai’s investment of 400 billion won is understood as an acquisition deal.
42dot’s smart platform provides car-hailing and logistics services through the urban mobility operating system (UMOS). It enables the driverless system for vehicles, drones, delivery robots, etc. Hyundai set up a TaaS division in April 2021 to lead the group’s future mobility service-related businesses.
