Visible achievements in robotics, UAM, and autonomous driving sectors
Full-scale launch of electrification centered on electric and hydrogen electric vehicles
Securing position as a global 'first mover' in the hydrogen economy
[Asia Economy Reporter Yoo Je-hoon] Chung Eui-sun, Chairman of Hyundai Motor Group, will mark his first anniversary in office on the 14th. Industry insiders evaluate that under Chairman Chung's leadership, Hyundai Motor Group has successfully solidified its position as a global leader in future new business sectors such as robotics, urban air mobility (UAM), and hydrogen over the past year.
"The goal of innovation is humanity"... Accelerating new businesses
"The mission that all Hyundai Motor Group employees must unwaveringly uphold is to realize humanity's dream of safe and free mobility and peaceful life together." This is the vision of Hyundai Motor Group revealed by Chairman Chung in his New Year's address earlier this year.
In fact, Chairman Chung's will is materializing through robotics, UAM, autonomous driving, and hydrogen visions. After taking office, Chairman Chung chose robotics as the first major merger and acquisition (M&A) area. Hyundai Motor Group agreed to acquire 80% of Boston Dynamics' shares in December last year and completed the M&A in June this year.
Boston Dynamics possesses world-class comprehensive technology essential for robot operation, including autonomous driving (walking), perception, and control, developing quadruped robot Spot and research humanoid robot Atlas launched last year. Boston Dynamics plans to commercialize the logistics robot Stretch, capable of loading and unloading up to 23 kg boxes at a rate of 800 per hour, by next year and expand its business areas to manufacturing, logistics, and construction.
The group's internal organization, Robotics Lab, is also developing robots that coexist with humans, such as wearable robots, AI service robots, and robotic mobility. Last year, Chairman Chung encouraged developers of the medical wearable robot MEX, designed to assist walking for patients with lower body paralysis, saying, "Though the number of people who need this technology may be small, we can make their dreams come true. And any one of us could find ourselves in need of this technology. Since it is a technology essential to humanity, we must do our best to develop it." This reflects the belief that 'robotics is not an end in itself but solely a means for humans.'
Hyundai Motor Group is also laying the foundation for popularizing UAM, which expands mobility space into the sky. UAM is a crucial pillar in realizing humanity's dream of safe and free mobility, which Hyundai Motor Group aims for. Chairman Chung has told UAM business division personnel, "Our mission is to provide service with care so that people can travel stress-free to wherever they want."
Accordingly, Hyundai Motor Group disclosed specific UAM development plans at the end of last year. By 2028, it will launch a fully electric UAM model optimized for urban operation, and in the 2030s, it will introduce regional air mobility products connecting neighboring cities. It is also pursuing the development of an aviation hydrogen fuel cell powertrain with outstanding efficiency and driving range using hydrogen fuel cell technology.
Collaborations related to UAM takeoff and landing sites are underway. Hyundai Motor Group is closely negotiating to open new markets with major U.S. cities such as Los Angeles, Singapore, and has signed a business agreement with Seoul. The group is expanding its organization by establishing a UAM corporation in Washington, U.S., and recruiting aerospace technology development experts.
In the autonomous driving field, Hyundai Motor Group is one step closer to realizing customers' new mobility experiences with the most innovative and reliable technology. In September, Hyundai unveiled the Ioniq 5-based robotaxi jointly developed with Motional, an autonomous driving joint venture, at the Munich IAA Mobility show in Germany. Motional, which holds world-class autonomous driving technology, is collaborating with global ride-sharing company Lyft to launch a fully driverless autonomous driving service using the Ioniq 5 robotaxi in 2023. Motional has obtained the industry's first driverless autonomous driving test license in Nevada, U.S., and is advancing its technology.
Accelerating electrification strategy centered on electric and hydrogen electric vehicles
Alongside this, Hyundai Motor Group is also promoting an electrification strategy centered on electric vehicles and hydrogen electric vehicles as core areas of future smart mobility. Hyundai, Kia, and Genesis launched the Ioniq 5, EV6, and GV60 sequentially this year based on the dedicated electric vehicle platform E-GMP. These models have attracted attention by offering world-class driving range, product quality, safety, and new mobility experiences such as V2L (Vehicle to Load).
Hyundai Motor Group has also detailed its mid- to long-term electrification plans. Hyundai plans to raise the proportion of electrified models among global vehicle sales to 80% by 2040. Genesis will launch all new models as electrified vehicles starting in 2025 and complete a lineup of eight hydrogen and battery electric vehicles by 2030. Kia aims to increase the share of eco-friendly vehicle sales to 90% in major markets by 2035.
The group is also accelerating in the mobility service sector. In April this year, Hyundai and Kia consolidated their mobility service capabilities and established the TaaS (Transportation as a Service) headquarters. The TaaS headquarters is responsible for global mobility service strategy planning and operation. It integrates existing mobility services from the customer's perspective, introduces new service models based on user data to enhance global mobility business competitiveness, and creates an environment where various companies can participate and collaborate.
Hyundai Motor Group also values creating a future mobility ecosystem that includes partners. Chairman Chung expressed his intention to grow together with partners at the 'Partnership Day' earlier this year. Hyundai Motor Group supports partners' successful transition to eco-friendly future mobility parts suppliers. In April, it jointly established a fund with the government and financial sectors to help domestic parts companies transition to eco-friendly future car parts businesses.
The group is conducting a 'Together Future' campaign to communicate and share future visions with partners and has built the 'Global Partnership Center,' the largest partner training facility in Korea.
The partner ecosystem is also expanding to startups. This aims to create synergy by linking the diverse potential of startups with Hyundai Motor Group's new growth areas.
Hyundai Motor Group launched Zero1 Funds 1 and 2 to invest in startups in future fields such as mobility, eco-friendly vehicles, AI, and connected cars. It also supports mutual cooperation among 87 partners and 412 startups (including in-house startups) in a wide range of fields including electrification systems (batteries, fuel cells), smart factories, eco-friendly and renewable energy-related businesses, and IT/software.
Chung Eui-sun becomes a 'first mover' in the hydrogen sector
Chairman Chung has also solidified his position as a global 'first mover' in the hydrogen sector. The vision for a hydrogen society and achieving carbon neutrality are part of Chairman Chung and Hyundai Motor Group's commitment to overcoming the global climate crisis.
Last month, the Hydrogen Wave event hosted by Hyundai Motor Group embodied the future hydrogen society vision envisioned by Chairman Chung. Hyundai Motor Group unveiled Hydrogen Vision 2040, aiming to make 2040 the inaugural year for hydrogen energy popularization, along with world-class hydrogen fuel cell technology and blueprints for hydrogen mobility.
By 2028, the group plans to apply hydrogen fuel cell systems to all commercial vehicle lineups and showcased concept mobility 'Trailer Drone' for unmanned long-distance transport systems and prototypes of next-generation fuel cell systems of 100kW and 200kW. The fuel cell systems will be advanced and widely applied not only to automobiles but also to trams, trains, ships, UAM, and across living and industrial sectors such as homes, buildings, factories, and power plants.
At the event, Chairman Chung emphasized, "Hyundai Motor Group will actively strive to accelerate the hydrogen society for humanity's future as a responsible global corporate citizen."
Hyundai Motor Group is also actively expanding its global business through the hydrogen fuel cell system brand HTWO. HTWO means 'hydrogen for humanity,' signifying a commitment to providing high value to humanity beyond mere energy. In March, the group broke ground on HTWO Guangzhou, its first overseas hydrogen fuel cell system production plant.
Chairman Chung is proactive in spreading global consensus on hydrogen by presenting and realizing practical solutions to climate change issues and energy paradigm shifts. Shortly after his inauguration last year, he attended a meeting of the Hydrogen Economy Committee, Korea's hydrogen economy control tower. This year, he led the launch of the CEO council 'Korea H2 Business Summit' to promote cooperation among domestic companies in hydrogen businesses and expand the hydrogen industry base. Internationally, he has contributed to global hydrogen agenda-setting by serving as co-chair of the Hydrogen Council.
Hyundai Motor Group's hydrogen electric vehicles are gaining attention overseas in commercial vehicles following passenger cars. Over 50 Hyundai hydrogen electric trucks are operating in Switzerland, and 30 units will be supplied to the U.S. starting in 2023 through the California port eco-friendly truck introduction project. Recently, the group also delivered the hydrogen bus Elec City to Munich, Germany.
Hyundai Motor Group is also committed to reducing carbon emissions. Hyundai Motor Company announced it will achieve carbon neutrality across all stages from vehicle production to operation and disposal by 2045. Major affiliates including Hyundai Motor, Kia, and Hyundai Mobis are pursuing joining the global RE100 campaign to switch 100% of their corporate electricity consumption to renewable energy.
Solidifying global market position despite semiconductor shortage and COVID-19
The global business environment was extremely uncertain around the time Chairman Chung took office. The spread of COVID-19, rising raw material prices, and strengthened protectionism intensified uncertainties. Especially from early this year, automakers faced difficulties due to a shortage of automotive semiconductors.
However, Hyundai and Kia secured competitiveness in finished vehicles with new models and customer-tailored services that exceeded global market expectations, recording significantly improved performance compared to last year. The two companies sold about 5.05 million units by September this year, a 13.1% increase compared to the same period last year, quickly recovering from the pandemic-induced decline.
They are particularly increasing market share in major advanced markets such as the U.S. and Europe, outperforming industrial demand growth rates. While total U.S. vehicle sales increased by 13.3% through September, Hyundai and Kia sold approximately 1.175 million units, a 33.1% growth. Their market share rose to 10%, up 1.5 percentage points from the previous year. In Europe, they sold about 663,000 units through August, a 28.3% increase. Since overall European industrial demand grew by only 12.7%, Hyundai and Kia's market share increased from 7.1% last year to 8.1% this year, a 1 percentage point rise.
Hyundai and Kia have notably increased the sales proportion of high value-added vehicles such as SUVs, luxury cars, and high-performance cars. Genesis sold about 144,000 units worldwide, including Korea, through September, a 57% increase from approximately 91,000 units in the same period last year. Genesis established local subsidiaries in Europe and China this year and has begun full-scale local market penetration.
The group is also solidifying its position as an eco-friendly brand. Hyundai and Kia sold about 532,000 eco-friendly vehicles through September, a 68% increase from the previous year. Total electric vehicle sales, including hydrogen electric vehicles, reached approximately 176,000 units, a 70% growth year-on-year. The Nexo hydrogen electric vehicle surpassed cumulative sales of 10,000 units worldwide last year, the first among hydrogen electric vehicles globally, and cumulative sales of 20,000 units are expected as early as the end of this year.
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