A Hyundai Motor logo is seen on a glass door at a company branch in Seoul on July 23, 2015
Jung Yeon-Je | AFP | Getty Images
South Korean carmakers Hyundai Motor and Kia Motors said on Monday they were not in talks with Apple to develop an autonomous vehicle.
Hyundai Motor shares fell 6.41% in South Korea on Monday morning while Kia Motors shares fell 13.2%. Other affiliates, including Hyundai Wia, Hyundai Mobis and Hyundai Glovis, were also sharp.
“Hyundai Motor has received requests from several companies for cooperation in the joint development of autonomous electric vehicles, but no decision has been made as it is at an early stage,” the company said in a CNBC translation of a regulatory dossier. .
Hyundai Motor is not in talks with Apple about developing autonomous vehicles.
Its subsidiary Kia Motors, which is the second largest carmaker in South Korea after Hyundai, made a similar filing. The company said it was investigating the prospects of collaborating with ‘multiple companies abroad’ on autonomous electric vehicles, but nothing has been decided.
Kia Motors also said it was not in talks with Apple.
Hyundai initially said last month that it had talked to Apple at an early stage, but later reviewed the statement and made no mention of the iPhone maker. This led to an increase in the shares of Hyundai and its subsidiaries, including Kia Motors, at the time.
This month, CNBC reported that Apple was close to concluding an agreement with Hyundai-Kia to manufacture an autonomous electric vehicle from Apple at the Kia plant in West Point, Georgia. Sources told Phil LeBeau of CNBC that no agreement has been reached yet and that Apple may eventually decide to work separately with another carmaker, or to work with Hyundai.
Shares could fall further
Small investors bought Hyundai Motor and Kia shares worth about 915.7 billion Korean won ($ 817 million) and 798.8 billion won (about $ 713 million), respectively, according to the January 8 speculation about a possible collaboration with Apple, according to Sung Yop Chung. regional head of automobiles and components at Daiwa Capital Markets.
“Following the negative atmosphere of both (Hyundai Motor) and Kia’s submission this morning, emphasizing that there is currently no EV collaboration with Apple, the worst case scenario indicates that Kia’s shares could correct as much as 31% , “he told Chery Kang, CNBC.
The speculation about Apple’s car business has been going on for several years, but nothing concrete has materialized.
Some Wall Street analysts see the automotive sector as a new market for Apple to grow in, but others warn against the reality of producing an Apple brand, as it could potentially mean heavy investments for low margins.
CNBC’s Chery Kang contributed to this report.