[The Current State of Future Cars] Hyundai's Strongest Rivals: "Tesla and Toyota"

Hyundai Competes with Global Giants in Finished Cars and EV Sales
Each Company Has Its Strengths, but Lacks a Full Range of Technologies

Boston Consulting Group's '2022 World's 50 Most Innovative Companies'

[Editor's Note]

Smart and clean. This is the direction of future automobiles. As the word "automobile" suggests, vehicles will move autonomously, and since they will not run on fossil fuels, they will produce zero emissions. The reason the automotive industry is described as being in a period of dramatic transformation is that future vehicles cannot be built using traditional methods alone. The paradigm of automobile manufacturing, which has lasted for over a century, is changing to efficiently control increasingly complex electronic systems and enable communication between vehicles. As vehicles become fundamentally different from those of the past, automakers are no longer content with simply manufacturing and selling cars; they are now seeking to encompass a wide range of upstream industries. They believe that in order to enhance the competitiveness of finished products, they must understand how buyers use their vehicles and what the entire life cycle of a vehicle looks like. This article examines the current trends and progress in future automobile development.

[Asia Economy, Sung Kiho] Hyundai Motor's biggest competitors in the race to secure future automotive technologies are Tesla and Toyota. Tesla leads in electric vehicles, while Toyota boasts world-class expertise in hybrids and quality. However, some analysts argue that Hyundai is the only company with world-leading capabilities in all the core technologies of future mobility: electric vehicles, hydrogen vehicles, and robotics.

According to the automotive industry on September 25, the global management consulting firm Boston Consulting Group (BCG) recently announced its "2022 World's 50 Most Innovative Companies." BCG has published this report annually since 2005.

Among the automotive companies, five were selected. Tesla ranked 5th, Toyota 21st, and Hyundai 33rd, placing Hyundai in the global automotive "Top 3" for innovation. GM and Ford followed at 42nd and 43rd, respectively.

Of these, Tesla and Toyota are Hyundai's strongest rivals. In the first half of this year, Hyundai sold 3,299,000 units in the global market, ranking third after Toyota (5,138,000 units) and Volkswagen (4,006,000 units). In terms of electric vehicles, Hyundai is fourth in the world, following Germany, the United States, and China. Notably, in the fiercely competitive U.S. market, Hyundai is second only to Tesla.

bZ4X

However, each competitor has its own weaknesses. Although Toyota is the top global seller, it is lagging behind in electrification. According to SNE Research data released in July this year, Toyota's sales of electric and plug-in hybrid vehicles in the first half of the year totaled only 50,000 units. When looking solely at sales of electric and plug-in hybrid vehicles, Toyota ranks just 22nd.

At the end of last year, Toyota declared its full-scale entry into the battery electric vehicle market. Although the company had previously focused on hybrids, it could no longer ignore the global automotive market trend. Starting this year, Toyota launched its first dedicated electric vehicle, the bZ4X, in April.

Nevertheless, most analysts agree that Toyota still has a long way to go. Last month, Toyota decided to offer refunds to customers who purchased the bZ4X. The company also provided a $5,000 credit (approximately 7 million KRW) that could be used toward the purchase of a Toyota internal combustion engine vehicle. In June, Toyota announced a full recall of the bZ4X due to concerns that the wheels could detach while driving. Additionally, the company sent warnings to customers who had already received their vehicles, advising them to refrain from driving as much as possible. It is rare for a company to refund vehicles that have already been sold.

Tesla's humanoid robot 'Optimus'

Tesla is recognized as an undisputed leader in electric vehicles and autonomous driving, but in other fields, it is still in the early stages. On September 30, Tesla is scheduled to unveil a prototype of its self-developed humanoid robot, "Optimus." Tesla has already revealed key specifications of the robot, which stands over 170 cm tall and weighs 56 kg-similar to the average adult physique.

Experts predict that while Tesla may demonstrate some basic capabilities at this robot unveiling event, it is unlikely to meet the public's expectations of displaying human-like abilities.

Nancy Cook, a professor at Arizona State University, pointed out that for Tesla to prove its success, the robot must perform a variety of unplanned actions. She said, "If Musk's robot simply walks or dances, those are things that have already been done by other companies and are not particularly impressive."

Boston Dynamics' service robot 'Spot' (left) and humanoid robot 'Atlas'.

In contrast, Hyundai has already secured world-class robotics technology since acquiring Boston Dynamics. Chung Euisun, Chairman of Hyundai Motor Group, has repeatedly expressed his intention to expand the robotics business, stating in 2019, "We plan to restructure our future business portfolio to consist of 20% robotics, 30% urban air mobility (UAM), and 50% automobiles."

Boston Dynamics launched its service robot "Spot" in 2020, supplying it to various industrial and disaster sites. The company also has the humanoid robot "Atlas" and the logistics robot "Stretch."

Boston Dynamics, in particular, possesses the world's best humanoid robotics technology, which is crucial for the future mobility Hyundai is targeting. Advanced information processing and control technologies developed for humanoid robots are essential for developing stable autonomous driving and urban air mobility (UAM) systems.

Kim Doohyun, an analyst at Hana Securities, said, "Unlike machines that have focused solely on efficiency, robots are distinguished by combining intelligence and efficiency, making them highly effective for workforce replacement. This is why the robotics industry is inevitably attracting attention," adding, "Demand for robots will continue to rise in the mid- to long-term."