HMC has dismissed as speculation a Chosun Daily report that HMC plans to spin off one of its mobility divisions to form a JV with Google. We think HMC’s lack of differentiation in autonomous driving and minimal big data accumulated makes it difficult to attract exclusive JVs with tech giants. We are also concerned about HMC’s recent break-up with its electric mobility partners (e.g. joint EV project with US start-up Canoo). US incentive costs in Mar 21 were up 15% yoy. We continue to see unattractive risk-reward from chip shortages and raw material cost inflation.