{"id":8794,"date":"2026-10-14T22:03:27","date_gmt":"2026-10-14T22:03:27","guid":{"rendered":"https:\/\/sotnews.agency\/?p=8794"},"modified":"2026-10-14T22:03:27","modified_gmt":"2026-10-14T22:03:27","slug":"hyundai-motors-tech-bets-face-headwinds-as-core-business-loses-steam","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=8794","title":{"rendered":"Hyundai Motor’s tech bets face headwinds as core business loses steam"},"content":{"rendered":"
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\"Hyundai<\/picture>
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Hyundai Motor CEO Jose Munoz delivers an address at the world premiere of the all-new Tucson SUV at Sound River Studios in New York, Oct. 1. Courtesy of Hyundai Motor<\/p>\n<\/figcaption><\/figure>\n

Hyundai Motor\u2019s weakening auto profitability is raising questions about the sustainability of its costly investments in robotics and autonomous driving, as the technologies remain years away from generating significant earnings.<\/p>\n

The company is betting on Boston Dynamics\u2019 Atlas humanoid robot, its own software-defined vehicle (SDV) and autonomous driving capabilities as three core pillars for its future mobility.<\/p>\n

Yet those businesses are far from generating tangible earnings, leaving Hyundai increasingly dependent on its conventional auto business which faces mounting earnings pressure from labor disputes at home, tariffs from the United States and intensifying competition from Chinese automakers in Europe.<\/p>\n

The timing gap between its weakening core business and future growth engines is becoming harder for investors to overlook. Hyundai\u2019s shares have fallen around 60 percent from their June 1 peak of 783,000 won ($587) to less than 320,000 won on Monday, reflecting fading enthusiasm for its robotics ambitions and growing doubts over its earnings outlook.<\/p>\n

The pressure continues to be raised across the nation\u2019s brokerages. Five brokerages \u2014 KB Securities, Shinhan Securities, Kiwoom Securities, Yuanta Securities and Hyundai Motor Securities \u2014 has recently lowered their target prices for the automaker. KB Securities cut its target to 700,000 won per share from 720,000 won, while Hyundai Motor Securities made a steeper reduction to 500,000 won from 630,000 won.<\/p>\n

\"Hyundai<\/picture>
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Hyundai Motor’s electric vehicles used for its autonomous driving demonstration and relevant data collection \/ Courtesy of Hyundai Motor<\/p>\n<\/figcaption><\/figure>\n

The revisions reflect expectations that Hyundai\u2019s near-term earnings will remain under pressure, even as its long-term investment rests increasingly on technologies that have yet to prove their commercial viability.<\/p>\n

KB Securities estimated Hyundai\u2019s third-quarter operating profit at 2.55 trillion won, down 10.4 percent from the previous quarter. The brokerage attributed much of the weakness to production disruptions, estimating that labor strikes would reduce global shipments by about 50,000 vehicles.<\/p>\n

The production losses come as Hyundai must defend its market position against competitors offering increasingly cost-competitive vehicles.<\/p>\n

In Korea, Chinese automaker BYD registered 20,137 vehicles from January through September, ranking fourth among imported car brands for the year. Meanwhile, Hyundai\u2019s domestic sales face pressure from shifting consumer demand, while its U.S. business must navigate trade policy uncertainty and the cost of localizing production.<\/p>\n

The problem extends beyond the immediate impact of strikes and tariffs. Maintaining sales volumes in a more competitive market may require greater discounts and incentives, potentially squeezing per-vehicle profits just as Hyundai needs to fund its next wave of investment.<\/p>\n

\u201cHyundai\u2019s share price is being weighed down not only by deteriorating profitability in its automotive business, but also by growing doubts about its ability to establish an independent SDV business,\u201d said Kim Pil-soo, a professor of automotive engineering at Daelim University.<\/p>\n

\"Boston<\/picture>
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Boston Dynamics’ humanoid robot Atlas appears on a stage during a media event of Hyundai Motor on the sidelines of this year’s CES tech fair in Las Vegas, Jan. 5. Courtesy of Hyundai Motor<\/p>\n<\/figcaption><\/figure>\n

The challenge is particularly acute in software and autonomous driving, where Hyundai is trying to move beyond its traditional role as a vehicle manufacturer and establish control over technologies that could determine future industry profits.<\/p>\n

Hyundai has stepped up efforts to develop its own autonomous driving capabilities, including strengthening leadership at its software subsidiary, 42dot. But the business has yet to demonstrate that it can generate returns commensurate with the resources invested in it.<\/p>\n

42dot has accumulated 705.5 billion won in operating losses between 2021 and 2025, clearly indicating the financial burden of developing proprietary software and driving technologies.<\/p>\n

The auto expert said the appointment of new 42dot CEO Kim Min-woo late last year was intended to turn the business around, but the process would still take time.<\/p>\n

\"Park<\/picture>
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Park Min-woo, president and head of Hyundai Motor Group\u2019s Advanced Vehicle Platform division and CEO of 42dot, introduces the group\u2019s vision to job seekers in Silicon Valley at the Tech Talent Forum 2026 at the San Jose Convention Center in Calif., Sept. 17. Yonhap<\/p>\n<\/figcaption><\/figure>\n

\u201cHyundai Motor Group needs to become a tier-1 player in autonomous driving within the next several years for its share price to recover on a more stable basis,\u201d he said.<\/p>\n

The group\u2019s reliance on Nvidia\u2019s technology also presents a strategic question. Hyundai has moved to incorporate Nvidia\u2019s artificial intelligence (AI) computing capabilities into its autonomous driving development, but greater dependence on an external technology provider could limit its control over a critical part of the future mobility business.<\/p>\n

The distinction matters because Hyundai\u2019s ambitions extend beyond cars. SDVs and autonomous driving are expected to underpin the group\u2019s plans for robotics and other future mobility businesses.<\/p>\n

Without stronger in-house capabilities in driving algorithms and vehicle software, the group could struggle to capture the full value of those investments, even if it succeeds in manufacturing competitive vehicles and robots, according to the expert.<\/p>\n

Hyundai Motor Group also plans to introduce Boston Dynamics\u2019 Atlas humanoid robot into manufacturing operations before gradually expanding its role.<\/p>\n

However, deploying robots on factory floors is not the same as generating significant commercial returns. The scale of adoption, operating costs and productivity gains will determine whether Atlas becomes a meaningful profit contributor or remains a capital-intensive development project.<\/p>\n

\u201cHyundai Motor needs to secure greater independence in autonomous driving AI before Atlas reaches full commercialization around 2029 to 2030, so it can ensure sustainable growth in an era of future mobility,\u201d the professor said.<\/p>\n

Hyundai is looking to strengthen its manufacturing and sales footprint in major markets to deal with the growing uncertainty its key sales territories \u2014 Korea, the U.S. and Europe. The latest inauguration of its Pune plant in India is part of its effort to expand production capacity and capture demand in a strategically important emerging market and reduce its strong sales reliance on the U.S. and Korea.<\/p>\n

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Hyundai Motor CEO Jose Munoz delivers an address at the world premiere of the all-new Tucson SUV at Sound River Studios in New York, Oct. 1. Courtesy of Hyundai Motor Hyundai Motor\u2019s weakening auto profitability is raising questions about the sustainability of its costly investments in robotics and autonomous driving, as the technologies remain years…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_2277560469115098_106292521332774":"","twitter_aToxNzczMzI3Njk4OTg4ODUxMjAxOw==_1773327698988851200":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_templately_pack_id":"","_templately_imported_at":"","_templately_source":"","_templately_import_session_id":"","footnotes":""},"categories":[16,14],"tags":[],"class_list":["post-8794","post","type-post","status-publish","format-standard","category-korea","category-trending-news"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t