Hyundai Motor steps up physical AI push as Chinese competition, stock slump pressure growth
Hyundai Motor Group is expanding robotics and physical AI at its Uiwang R&D center and factories to cut costs and sharpen competitiveness as its shares slump and Chinese EV competition intensifies.
The group faces pressure to improve profitability in conventional carmaking as competition intensifies in the global electric vehicle market, particularly from lower-priced Chinese models. Investors are also questioning when its heavy investments in robotics will start to pay off.
Hyundai Motor Co.'s shares more than doubled after its U.S. subsidiary Boston Dynamics unveiled its Atlas humanoid robot at the Consumer Electronics Show in January, reaching a record closing high of 755,000 won ($565.2) in June. The stock has since fallen to near pre-CES levels, closing at 312,000 won on Friday, as enthusiasm over robotics faded amid weak earnings and concerns about how soon the technology can turn profitable. Speculation about a delayed initial public offering of Boston Dynamics has added to the uncertainty. The U.S. robotics company reportedly incurred cumulative losses of around 1.7 trillion won over the past five years.
"Shares of Hyundai Motor have fallen sharply amid weakness in its core automotive business," Lee Sang-soo, an analyst at iM Securities, said. "Growing concerns over potential delays in Boston Dynamics' business plans have also fueled calls for lower valuation multiples."
Against that backdrop, Hyundai is developing AI-powered factory systems, logistics robots and automated vehicle inspection technologies to boost productivity and reduce manufacturing costs at its Uiwang center, south of Seoul. The group's E-Forest Center is leading efforts to integrate AI, robotics and other smart manufacturing technologies into its factories, making production lines more flexible and efficient.
The company is working with U.S. chip giant Nvidia Corp. on Polaris, an AI-powered manufacturing platform that helps factory workers access information, analyze production data and handle daily tasks more efficiently. It is also developing AI-based inspection systems that can automatically spot defects on vehicle exteriors, reducing reliance on outside suppliers and cutting costs. The technology is set to be introduced at Kia's EVO WEST plant in Hwaseong, southwest of Seoul. Another project focuses on using computer simulations to automatically generate movement paths for industrial robots, reducing the need for manual programming; development is expected to be completed by June 2027.
The efforts are part of a longer-term road map to build factories where AI and robots handle increasingly complex tasks with less human intervention. The group aims to develop more advanced autonomous manufacturing systems at its Hyundai Motor Group Innovation Center Singapore by 2030 before introducing humanoid robots and more extensive automation at future factories from 2032.
"Our goal is to create a manufacturing environment where people can focus on safer, higher-value tasks, while data and AI help make factory operations more flexible and sustainable," Choi Young-tae, head of Hyundai Motor Group's E-Forest Center, said during a media event Friday.