Hyundai Motor Group has teamed with express bus firm Kumho Express to further develop South Korea’s hydrogen mobility ecosystem.
Kumho Express announced in a regulatory filing that Hyundai Motor and Kia, both subsidiaries of Hyundai Motor Group, will purchase 15 billion won ($13 million) in new shares issued by the company in a private placement. They will invest 9 billion won (9 billion won) and 6 billion won (6 billion won), respectively.
This is the first time the South Korean automobile group has invested in a local transportation company.
The cooperation with Kumho Express is intended to enable the company to replace its bus fleet with hydrogen fuel cell cars. The cooperation may include the appointment of a representative from Hyundai Motor Group to Kumho Express’s board of directors.
“This is a strategic investment and partnership to ramp up the hydrogen fuel cell bus business,” said a representative for Hyundai Motor Group. “We plan to provide hydrogen fuel cell buses to Kumho Express. Details have not been decided yet.”
Hyundai Motor Group’s agreement with Kumho Express enables the company to further develop its hydrogen mobility ecosystem into the express bus market.
The relationship benefits Kumho Express as well, as Hyundai Motor Group is a world leader in hydrogen fuel cell vehicle technology. Additionally, transportation industries are under increasing regulatory pressure to transition to zero-emission cars.