Hyundai Motor Group and Singapore based mobility, delivery and payment app Grab have expanded their partnership to accelerate adoption of electric vehicles in Southeast Asia

An earlier EV pilot in Singapore found that high costs, lack of charging locations and long waiting times for charging were the main barriers hindering Grab driver-partners from adopting EVs.

The alliance now plans to tackle these perceptions and develop new EV business models such as leasing EVs with a battery-as-a-service model or car-as-a-service model, and EV financing.

Both parties will also develop a joint EV roadmap to accelerate adoption in Southeast Asia. The pilot programs will start this year, beginning in Singapore, and then expanding to Indonesia and Vietnam.

As part of the roadmap development, the two parties will also conduct further EV feasibility studies. The aim is to gain a deeper understanding of barriers to wider EV ownership and adoption, then translating the findings from the study into practical ways to further develop the EV ecosystem.

These insights will provide governments and ecosystem partners with ideas and best practices on how EV policies can be shaped to better address the day-to-day operational routines of ride-hailing drivers and delivery-partners. This comes at a critical time as last-mile logistics and deliveries continue to experience unprecedented growth, and EVs can play a huge role in reducing carbon emissions from vehicles.

In addition, in line with Hyundai Motor Group’s latest future strategy, both parties will explore collaboration in new business opportunities and technologies such as smart city solutions.

Russell Cohen, Group Managing Director of Operations, Grab, said, “While EVs are relatively nascent in Southeast Asia, Grab plans to play a vital role in working with partners and governments to accelerate EV adoption. As government EV policies and incentives are implemented and essential infrastructure like charging stations continue to be built, this partnership will provide insights and best practices on the usage of EVs as part of the day-to-day operations of driver and delivery-partners. For example, we’ve piloted ways to reduce driver-partners’ downtime by enabling them to swap their e-moped batteries at GrabKitchen while they wait to collect food orders. Successful EV adoption is a multi-stakeholder effort, particularly in Southeast Asia, and we’ll continue to leverage our technology and operational leadership to build a fleet for the future.”