“We are not talking to Apple about the development of autonomous cars,” Hyundai said in a statement.
The statement added that Hyundai had received requests from “several companies” about the development of autonomous electric cars, but that “no decision has been made as we are in the early stages”.
Kia Motors, which is owned by Hyundai, referred CNN Business to its parent company’s statement.
Apple declined to comment.
The announcement shook investors who had been betting on some kind of tie between companies based on weeks of speculation and local reports. Kia’s shares plunged 13%, putting it on the right track to its worst day since 2008. Hyundai’s shares fell 5.6%.
Apple’s interest in South Korean automakers made sense. Analysts noted that Hyundai is open to joining forces with other companies and even technology firms; already has partnerships with Chinese search giant Baidu and American chip maker Nvidia on autonomous driving, for example.
The automaker has also made significant strides in next-generation vehicles, including hydrogen fuel cell cars and an electric vehicle manufacturing platform that it unveiled in December.
But Apple may also choose to enter into several partnerships, with analysts suggesting other major automakers such as Honda, Jaguar Land Rover from Tata Motors and Geely, Volvo’s Chinese owner, as potential options.