The Hyundai logo is displayed at the #WeAreMobility fair at the 97th edition of the Brussels Motor Show on January 18, 2019, in Brussels.
Dirk Waem | AFP via Getty Images
SINGAPORE – Hyundai Motor shares rose 20% after the South Korean automaker said it was in the early stages of negotiations with Apple over the possibility of working together to develop an autonomous car.
“We understand that Apple is in discussion with a variety of global automakers, including Hyundai Motor. As the discussion is in its early stages, nothing has been decided,” said a Hyundai Motor representative to CNBC’s Chery Kang.
The statement followed a local report from the Korea Economic Daily which said that Apple suggested the merger and Hyundai Motor was reviewing the terms. The report said that both electric vehicle production and battery development were included in the proposal and that the car could be launched in 2027.
Apple declined to comment on the report.
Shares of Hyundai Motor and its affiliates erupted in South Korea.
Hyundai Motor rose 20.87%, Hyundai Wia added 21.47%, Hyundai Mobis rose 23.15% and Hyundai Glovis rose 3.51%. Shares in Kia Motors, an affiliate of Hyundai, which is South Korea’s second largest car manufacturer, rose 9.84%.
Speculation about an Apple car has been common for several years, but nothing concrete has materialized.
Citing sources familiar with the matter, Reuters reported last month that Apple was advancing its autonomous car technology. The report said the iPhone maker was aiming to produce a passenger vehicle by 2024 that could include its own innovative battery technology.
While the report sent shares to companies that manufacture self-driving car parts, prominent Apple analyst Ming-Chi Kuo said the hype was purely speculative that some of these companies may supply parts for Apple’s car.
Kuo warned that the market was “very optimistic” about the Apple car and said he would not be surprised if the vehicle was not released by 2028 or later.
– CNBC’s Chery Kang contributed to this report