Apple was in talks with Hyundai Motor Group to co-develop electric vehicle together, Hyundai confirmed on Friday.
The South Korean automobile maker said it was in the early stages of talks with the iPhone maker and nothing was finalized.
There has been reports that Apple was planning to develop its own car but this is the first confirmed report of it with a Korean company.
A local media report said the two companies were planning to co-develop battery as well as add autonomous driving capabilities to the planned car.
Apple is likely looking to collaborate with other global automakers besides Hyundai as well. This is likely in consideration of not just self-driving technology and battery development but also profitability and production capacity. It will take billions of dollars to development and manufacture batteries and automobiles.
Profitability will be the key issue for a partnership between Apple and Hyundai, people familiar with the matter said, as the automobile industry as lower margin compared to the iPhone maker.
Share prices of Hyundai Motor and Hyundai Mobis increased following the revelation. Hyundai Motor’s share prices increased 20% as of 11am and was trading at 248,000 won.