[Future Cars Status] 'Driverless Taxis' by Year-End... Hyundai Focuses on Autonomous Driving with Platform Expansion

Collaboration with Platform Companies to Strengthen Autonomous Driving Technology
Future Growth Engines: Applications in Ships, Robots, and More

[Editor's Note]

Smart and clean. This is the direction of future automobiles. As the word "automobile" implies, vehicles will move on their own, and since they will not burn fossil fuels, there will be no emissions. The reason the automotive industry is said to be undergoing a major transformation is that future vehicles cannot be manufactured using only traditional methods. The paradigm of car production, which has continued for over a century, is changing to efficiently control complex electronics and enable communication between vehicles. As vehicles become fundamentally different from those of the past, automakers are now seeking to expand beyond simply manufacturing and selling cars, aiming to encompass a wide range of upstream industries. They believe that understanding how buyers 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 and progress in future automobile development.

[Asia Economy, reporter Sung Kiho] At the end of December 2022, after a year-end party in Gangnam, Seoul, office worker Kim Mihyun opened the KakaoT app on her smartphone to get home. Remembering how difficult it was to catch a taxi in Gangnam at the end of last year, and wanting to be able to talk freely in the car, she requested a ride from an autonomous taxi. In less than five minutes, a Hyundai IONIQ 5 autonomous taxi without a driver arrived, and Kim was able to ride home comfortably.

Within this year, it will become possible to call a Hyundai autonomous taxi using the KakaoT app. Hyundai's ongoing efforts to advance autonomous driving technology are starting to bear fruit. So far, Hyundai has formed extensive partnerships with various platform companies to enhance its autonomous driving technology. In particular, collaborations with Naver, Kakao, KT, and Socar are expected to help with the crucial task of accumulating data as the era of autonomous vehicles approaches.

According to industry sources on the 23rd, Hyundai recently signed a memorandum of understanding (MOU) with Kakao Mobility to commercialize autonomous taxis. The goal is to launch an autonomous taxi service within the year, allowing ordinary consumers to use Hyundai's "RoboRide" autonomous driving service through the KakaoT app.

Hyundai has advanced its autonomous driving technology through MOUs, joint investments, and acquisitions with various platform companies. In 2019, it established Motional in the United States as a joint venture with Aptiv, an autonomous driving company. In 2020, it signed an MOU with Naver, and the following year, it acquired robot company Boston Dynamics.

This year, the pace of collaboration has accelerated further. In March, Hyundai signed an MOU with Socar to link connected car operating systems (OS), and in August, it acquired the autonomous driving startup 42dot. In the same month, it also exchanged shares worth 750 billion won with KT. The partnership with Wavve this month to provide in-car OTT content is also seen as a step toward maturing autonomous driving technology.

A test drive event for the autonomous vehicle 'RoboRide' pilot service is taking place at the Hyundai AutoEver building on Teheran-ro, Gangnam-gu, Seoul, last June. Photo by Moon Honam munonam@

Hyundai's RoboRide has already been in pilot operation for Hyundai researchers in the Gangnam area since last month. With approval from the Ministry of Land, Infrastructure and Transport, Hyundai is operating two RoboRide vehicles on a total of 26 roads covering 48.8 kilometers, including Teheran-ro, Gangnam-daero, Yeongdong-daero, Eonju-ro, and Nambusunhwan-ro. Using Level 4 autonomous driving technology (high-level automation where driver intervention is not required), the vehicles find the shortest routes even in Gangnam's heavy traffic and perform advanced maneuvers such as lane changes and U-turns. Next year, the service area is expected to expand to 32 roads covering 76.1 kilometers, including Dosan-daero and Apgujeong-ro. However, for now, a safety driver is still on board in case manual driving is needed or emergencies arise.

Although Hyundai has independently raised its autonomous driving technology to a certain level, several steps are still needed to complete autonomous driving, which is at the core of future mobility. These include: ▲ next-generation communication networks (KT) capable of rapidly transmitting large volumes of data, ▲ service platforms (Socar, Kakao, Naver) that can connect with customers, ▲ advanced artificial intelligence and software (Motional, 42dot), and ▲ infotainment and connected car solutions (Wavve). Hyundai cannot accomplish all of this alone, which is why it is partnering with various companies.

The industry expects Hyundai's efforts to advance autonomous driving to be applied to future growth areas such as drones and robots. In particular, Hyundai is expected to have a significant impact on the ongoing lunar exploration project with six government-funded research institutes in Korea. Hyundai is responsible for manufacturing the lunar exploration vehicle, and autonomous driving technology is essential in this process.

Kim Kwangsoo, an analyst at eBest Investment & Securities, said, "Autonomous driving technology is already being applied not only to unmanned vehicles (UVs) such as self-driving cars, aircraft, and ships as means of transportation, but also in various fields such as defense, agriculture, security, search and rescue, and factories. In particular, it is replacing humans (drivers) in areas that require safety, efficiency, and reliability. Before long, autonomous driving will become a familiar part of our lives and will make significant contributions to improving our quality of life."