Hyundai Motor Group Accelerates Robotics & Physical AI Push To Counter Chinese Automakers, Revive Growth & Address Falling Shares

Seoul: To bolster its competitiveness against China's rapidly growing automakers and revive growth despite a steep decline in its share price, Hyundai Motor Group is accelerating its investment in robotics and physical artificial intelligence (AI). This strategic shift comes as the third-largest automaker faces mounting pressure to improve profitability in its traditional car manufacturing operations due to intensifying global competition, particularly from budget-friendly Chinese electric vehicles, according to Yonhap news agency.

Following a significant uptick in shares after its U.S. subsidiary Boston Dynamics showcased the Atlas humanoid robot at the Consumer Electronics Show (CES) in January, which reached a record high of 755,000 won (US$565.2) in June, the stock has since plummeted to near pre-CES levels, closing at 312,000 won on Friday. This decline is attributed to waning enthusiasm for robotics amid weak earnings and growing skepticism about the technology's profitability timeline.

With concerns about potential delays in Boston Dynamics' business plans further dampening investor sentiment, Hyundai is striving to transform the buzz around its robotics division into tangible profits while simultaneously maintaining a competitive edge in its core automotive business. Shares of Hyundai Motor have experienced a sharp decline, reflecting the challenges the company faces in converting the excitement surrounding its robotics venture into actual financial gains while ensuring its traditional automotive sector remains competitive.

In response to these challenges, Hyundai is focusing on developing AI-powered factory systems, logistics robots, and automated vehicle inspection technologies at its Uiwang Research and Development Center, located south of Seoul. The company is collaborating with U.S. chip giant Nvidia Corp. on the Polaris project, an AI-driven manufacturing platform designed to enhance factory workers' access to information, analyze production data, and streamline daily tasks.

Additionally, Hyundai is introducing AI-based inspection systems capable of automatically detecting defects on vehicle exteriors, thereby reducing dependence on external suppliers and curbing costs. These technological advancements are poised for rollout at Kia's EVO WEST plant in Hwaseong, southwest of Seoul, with completion expected by June 2027.