Eying India's Mobility Market
Hyundai Motor will invest in India's second largest car sharing company Revv and take on the Indian mobility market.
Hyundai Motor said on August 20 that it has made a strategic investment agreement with Revv and built the first bridgehead to enter India's sharing economy market.
Having launched a vehicle sharing business in India in 2015, Revv is rapidly raising its market share.
Hyundai said Revv is currently providing vehicle sharing services in 11 big cities in India and is strengthening its position in the market with innovative and differentiated services compared to other sharing economy companies.
In particular, it introduced “subscription” service, which combines rental and car-sharing for the first time in India.
Subscription is emerging as a third way of owning a car. If you pay a monthly fee, you can change the type of car freely, and the service period can be set as you want.
With the strategic investment in Revv, Hyundai is planning to build a new mobility business in connection with Revv’s car-sharing business, and to acquire the competence and technology to lead the future mobility market.
Hyundai Motor is also the only automaker to invest in Revv and is expecting a significant synergy effect.
Collaboration in various fields will be possible including providing cars appropriate for the vehicle sharing business, building a new mobility service platform, and marketing.
According to Hyundai, the car sharing market in India is rapidly expanding, just like in other emerging markets.
India's car call market is expected to grow from US$900 million in 2016 to US$1.5 billion this year, and US$2 billion in 2020. India’s vehicle sharing market will grow from the current 15,000 vehicles to 50,000 in 2020 and 150,000 in 2022.