[Future Cars Today] "No Steering Wheel, No Passenger Seat Needed"... Hyundai's Top 3 Automotive Technology Power

Unveiling PBVs and Securing LiDAR Patents: Racing Ahead in Technology Development
MOUs with IT and Content Companies
"Expanding the Scope from Content to Services"
"A Step Toward Becoming a Mobility Platform Provider"

[Editor's Note]

Smart and clean. This sums up the direction of future automobiles. True to the meaning of the word "automobile," vehicles will move on their own and, by not burning fossil fuels, will produce no emissions. The automotive industry is said to be undergoing a period of dramatic transformation because future vehicles cannot be manufactured using only the traditional methods. The paradigm of car production, which has continued for over a century, is changing, with the need to efficiently control increasingly complex electronic systems and enable communication between different modes of transportation. As vehicles become fundamentally different from those of the past, automakers are no longer simply focused on manufacturing and selling cars; they are now seeking to encompass a range of upstream industries as well. This is because they believe that understanding how customers use their vehicles and the entire lifecycle of a car is essential to enhancing the competitiveness of their finished products. This article examines the current trends in the development of future vehicles and how far the industry has come.

[Asia Economy, Yoo Hyunseok] As competition for dominance in the future vehicle market intensifies with the rise of electric vehicles, Hyundai Motor Company is emerging as a strong contender. Boston Consulting Group recently ranked Hyundai 33rd in its latest list of the "World’s 50 Most Innovative Companies." The only automakers ranked ahead of Hyundai were Tesla at 5th and Toyota at 21st. This is recognition of Hyundai's automotive technology as being among the global top three. Such results have been made possible by Hyundai's proactive approach to technology development. In particular, Hyundai's diverse and multifaceted R&D efforts are now shining even brighter in this era of major industry transformation.

◆Introducing PBVs, Filing Patents, and Focusing on Securing Technology=Hyundai Motor Group recently unveiled an airport pickup concept car, one of its "Purpose-built Vehicle (PBV)" electric vehicles. The most notable feature is that it incorporates a range of technologies optimized for both travelers and business operators. Instead of a passenger seat, a luggage rack has been installed, and the trunk space has been integrated into the passenger compartment.

This clearly demonstrates that the vehicle was developed specifically for airport pickup purposes. Industry experts believe that the rapidly changing transportation environment is driving the growth potential of PBVs. As businesses such as vehicle sharing expand, demand for PBVs specialized for mobility services is expected to increase.

Hyundai Motor Group's "PBV Test Bug" announced on the 16th. Photo by Hyundai Motor Group

Hyundai's focus on future growth is not limited to concepts. The company is also making significant strides in securing practical technologies. In the field of LiDAR technology, Hyundai ranks second with 248 patents, trailing only Waymo (271 patents) and surpassing GM (189 patents) and Toyota (125 patents). Notably, Hyundai plans to commercialize Level 3 autonomous driving technology by the end of this year, through the updated Genesis G90 model.

Hyundai is also making its presence felt in the eco-friendly vehicle sector, including electric and hydrogen vehicles. The Hyundai Ioniq 5 and Kia EV6 have swept awards such as "World Car of the Year," "North American Car of the Year," and "European Car of the Year." Additionally, at a commercial vehicle exhibition in Germany on September 19, Hyundai unveiled the "eDaily Hydrogen Electric Vehicle," developed with Iveco Group, which can travel up to 350 kilometers on a single charge. This demonstrates Hyundai's two-track approach to preparing for the eco-friendly vehicle market.

Hyundai Motor Group's efforts to secure future vehicle technologies are being recognized globally. In Boston Consulting Group's "World’s 50 Most Innovative Companies," Hyundai ranked 33rd, ahead of major U.S. automakers GM (42nd) and Ford (43rd).

Interior view of the airport pickup concept car unveiled by Hyundai Motor Company. Photo by Hyundai Motor Group

◆Extensive Collaboration with IT and Content Companies=This month alone, Hyundai has signed two major memorandums of understanding (MOUs). On September 19, the company agreed with Kakao Mobility to collaborate on demonstrating and commercializing autonomous mobility services, and with Wavve to cooperate on in-car OTT content services.

With Kakao Mobility, Hyundai is discussing ways to collaborate on various service demonstrations and business development using autonomous driving technology. As part of this, Hyundai plans to launch a pilot urban autonomous mobility service within the year, allowing users to summon and use the Hyundai Ioniq 5 "RoboRide" via Kakao Mobility's "KakaoT" platform. With Wavve, Hyundai will build a platform for integrating OTT services into vehicles. The two companies plan to cooperate on platform service operation, maintenance, provision of OTT content services, and the ongoing discovery of new content services.

Earlier this month, Hyundai also agreed to a 750 billion won equity swap with KT, signaling a move beyond simple MOUs toward active collaboration. The two companies will jointly develop 6G communication standards optimized for autonomous vehicles, expand electric vehicle charging infrastructure, and consider operating a future technology fund to support ICT technology development such as big data. They also plan to collaborate on security communication module technology, which is essential for expanding future business operations.

The future vision of smart mobility anticipated by Hyundai Motor Group. While the 'Autonomous Eco-friendly Purpose Built Vehicle (PBV)' is running on the road, the 'Urban Air Mobility (UAM)' is flying in the sky. Photo by Hyundai Motor Group

The reason Hyundai is collaborating not only with automotive companies but also with those in telecommunications, infrastructure, and content is to secure a leading position in the future vehicle market. The market for future vehicles is expected to grow significantly. According to the Korea Automobile Research Institute, the global autonomous vehicle market is projected to expand from $6.4 billion in 2020 to $1.0204 trillion by 2035. In particular, the autonomous driving service market-including taxis, logistics, and vehicle sharing-is expected to reach $3.2 trillion by 2030.

Moreover, the structure of the future vehicle market is fundamentally different from that of the traditional finished vehicle market. As industries such as semiconductors, cloud computing, software, and telecommunications enter the market, it is becoming more open. The increasing importance of electronics and software is making ICT capabilities a crucial factor for automakers. In addition, digitalization aimed at enhancing customer convenience is emerging as a powerful purchasing factor in the future vehicle market.

Hydrogen fuel cell system with a capacity of 90kW from Hyundai Motor Company installed in the 'eDaily Hydrogen Electric Vehicle'. Photo by Hyundai Motor Group

The components that make up automobiles are also changing. Power sources are shifting from fossil fuels to electricity and hydrogen, and the spaces in which vehicles can operate are expanding from the ground to the air. Furthermore, driving is expected to move beyond human operation to artificial intelligence (AI). The vehicle's interior is also evolving from a space solely for transportation to one for entertainment and productivity. For example, Tesla now allows users to play games on the center console. In short, as the automotive industry becomes a convergence point for infrastructure, content, and other diverse fields, collaboration with a variety of companies is essential.

Kim Pilsoo, professor of automotive engineering at Daelim University, stated, "Automakers are no longer just manufacturing and selling cars; every stage from management to scrapping has become part of their business model. In this process, companies with strengths in mobility are entering into MOUs or pursuing mergers and acquisitions, which are necessary steps toward becoming a comprehensive mobility platform provider."