Hyundai Rotem Restructures Around Robotics and Hydrogen... Targeting the Era of Physical AI

Company-wide Technology System Overhaul... Integration of Unmanned Solutions
Establishment of "Robotics & Hydrogen Business Division" and Organizational Consolidation
Integration of Robotics and Autonomous Driving into Defense, Railways, and Plant Sectors

Hyundai Rotem is redrawing its business landscape with a "Physical AI" system centered on robotics and hydrogen. The company plans to integrate unmanned systems, artificial intelligence (AI), hydrogen energy, and aerospace technologies into its existing business structure, which has traditionally been divided into defense, railways, and plant sectors.

On January 14, Hyundai Rotem announced an organizational restructuring that elevates its robotics and hydrogen businesses to core company-wide strategies, aiming to secure leadership in new business areas. As competition in physical AI-where systems perceive, judge, and act in the real world beyond generative AI-intensifies, the company intends to redesign its business portfolio, which includes weapon systems, trains, logistics equipment, and energy facilities, to focus on AI and robotics.

Perspective view of Hyundai Rotem's 4th generation multipurpose unmanned vehicle 'HR (Hyundai Rotem)-Sherpa'. Hyundai Rotem

In his New Year's address this year, Hyundai Rotem CEO Lee Yongbae stated, "The industrial competitive landscape is rapidly being reshaped around hydrogen, unmanned systems and AI, and aerospace," emphasizing, "Securing technological sovereignty and quickly commercializing it is essential." This reflects the company's recognition that it must move beyond simple automation to new industrial models that combine autonomous driving, robotics, and energy technologies.

The Defense Solutions division, responsible for defense, will focus on hybrid manned-unmanned ground weapon systems and aerospace projects. Next-generation tanks and armored vehicles, as well as the multipurpose unmanned vehicle "HR (Hyundai Rotem)-Sherpa," will be equipped with AI-based autonomous driving and swarm control functions. The company will also expand research and development on multi-legged walking robots. The strategy is to lead the shift from dangerous tasks performed by humans to those handled by robots and unmanned systems.

The company is also expanding its activities in the aerospace sector. Hyundai Rotem has begun developing South Korea's first 35-ton-class methane engine. Methane engines, which produce less soot during combustion, are advantageous for reusable launch vehicles and are considered a core technology for next-generation space transportation systems that utilize data and AI for repeated flights.

The railway division is being reorganized around AI-based maintenance and autonomous operation systems. Hyundai Rotem is developing a condition-based maintenance (CBM) system that analyzes operational, failure, and equipment data collected via sensors and the Internet of Things (IoT) to predict breakdowns. The company is also developing its own AI control systems, autonomous driving technology, and intelligent CCTV. The goal is to transform trains from "operating machines" into "AI platforms that assess their own condition."

A Hyundai Rotem official is inspecting railway vehicles through a condition-based maintenance system. Hyundai Rotem

The Eco Plant division is also moving toward a focus on robotics and AI. The company is expanding research, development, and commercialization of smart logistics equipment, such as unmanned port transport vehicles (AGVs), integrated with AI, and is intensively building its capabilities in robotics and hydrogen businesses.

To implement this strategy, Hyundai Rotem has established a new "Robotics & Hydrogen Business Division." The company has also created new robotics sales and robotics research teams. The existing New Growth Promotion Team and Hydrogen Energy PM organization have been reorganized into the R&H (Robotics & Hydrogen) Business Planning Team and the PM Team, respectively. The Hybrid Manned-Unmanned Systems Center and Robotics Team have been renamed the AX (AI Transformation) Promotion Center and the AI Robotics Team. Within the Aerospace Development Center, a new Aerospace Systems Team has been established.

The company has also streamlined its organizational structure, implementing the new system starting this month. The organization, previously divided by function, has been reorganized around business units to accelerate decision-making. The total number of divisions, centers, and teams has been reduced from 37 divisions, 15 centers, and 186 teams to 35 divisions, 14 centers, and 176 teams.

A Hyundai Rotem official stated, "The evolution toward Physical AI is changing both the industrial competitive structure and the way we work," adding, "We will enhance our technological competitiveness centered on robotics and hydrogen, and advance our core businesses by strengthening our execution capabilities with a fast and flexible organizational structure."