Apple and pairs: Markets soar over potential Hyundai-Apple pairing on cars

If the rumours prove true, US tech giant Apple is acting on its new appetite for the automotive industry and is planning to take a bite out of the emerging autonomous vehicle market in a joint venture with global carmaker Hyundai.

This emerged from a South Korean newspaper at the weekend (10 January, 2021) when its was reported that South Korean carmaker Hyundai and the tech giant are in the process of applying the finishing touches to their rumored deal on autonomous electric cars — with vehicles expected to roll off the production line in just three years.

Final agreement between Hyundai, Apple in March?

With negotiations between the two companies believed to be in full swing, the pair are expected to reach a final agreement by March this year, newspaper Korea IT News reported on Sunday. The media outlet was citing industry sources which revealed the potential joint venture between two of the world’s most well-known brands.

The outlet said the cars will be produced at a plant in the US, which is operated by Hyundai affiliate Kia Motors.

Plans were said to include the roll-out of some 100,000 vehicles in 2024 – three years earlier than suggested in previous reports.

Hyundai stock soars on the news

The news on the potential tie-up, which was first announced in a statement by Hyundai on Friday, sent the automaker’s stock soaring on the same day.

Its shares jumped around 20%, adding about $8 billion to the company’s market cap, while stocks in its affiliate, Kia Motors, the second-largest car manufacturer in South Korea, surged by over 8%. 

Apple shares did not see such an enormous rally on the last trading day of the week, but its investors had already reacted to news that the tech giant was finally moving forward with plans to get into the auto market at the end of December.

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Hyundai was the first to mention the new partnership in a statement, saying discussions with the iPhone maker were ongoing, but noted “nothing had been decided”.

Despite previously confirming to some media outlets that talks with Apple had taken place, it however then backtracked from its earlier statement, and said in a regulatory filing that it had received “requests for cooperation on joint development of autonomous electric vehicles from various companies”.

Investors, nonetheless, appear to have quickly shrugged off any initial confusion after Friday’s announcement.