Hyundai Motor says it is in early talks with Apple

SINGAPORE – Shares of Hyundai Motor rose 20% after the South Korean carmaker said it was in talks with Apple at an early stage about the possibility of working together to develop a self-driving car.

“We understand that Apple is in talks with a variety of global automakers, including Hyundai Motor. As the discussion is at an early stage, nothing has been decided,” a Hyundai Motor representative told Chery Kang, CNBC, said.

The statement follows a local report from the Korea Economic Daily which states that Apple proposes that the commitment and Hyundai Motor review the terms. The report said that both the production of electric vehicles and the development of the battery were included in the proposal and that the car could possibly be released in 2027.

Apple declined to comment on the report.

Shares of Hyundai Motor and its subsidiaries appeared in South Korea.

Hyundai Motor increased by 20.87%, Hyundai Wia added 21.47%, Hyundai Mobis increased by 23.15% and Hyundai Glovis by 3.51%. Shares of Hyundai subsidiary Kia Motors, the second-largest carmaker in South Korea, rose 9.84%.

Speculation about an Apple car has been full for several years, but nothing concrete has materialized.

Citing sources familiar with the matter, Reuters reported last month that Apple was moving forward with its self-driving car technology. According to the report, the iPhone manufacturer plans to manufacture a passenger vehicle by 2024 that could include its own breakthrough technology.

While the report raises stocks for companies that build auto parts, leading Apple analyst Ming-Chi Kuo said the hype is pure by speculating that some of the companies may supply parts for the Apple car.

Kuo warned that the market is “too bullish” on the Apple car and said he would not be surprised if the vehicle only starts in 2028 or later.

– CNBC’s Chery Kang contributed to this report