Hyundai Motor Group to Invest 125.2 Trillion Won in Robotics Ecosystem by 2030

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date 26-03-03 17:00

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On the 22nd, Hyundai Motor Group announced an unprecedented plan to invest 125.2 trillion won in South Korea over the next five years, aimed at fostering a robotics innovation ecosystem. This ambitious initiative spans various sectors, including complete vehicles (Hyundai and Kia), steel (Hyundai Steel), parts (Hyundai Mobis), logistics (Hyundai Glovis), defense, and rail (Hyundai Rotem). The group plans to utilize data accumulated from these manufacturing sites to enhance its capabilities in physical artificial intelligence (AI) and establish itself as a global leader in this domain.

Of the total investment of 125.2 trillion won, Hyundai Motor Group allocates 71.1% to future new industries (50.5 trillion won) and research and development (38.5 trillion won). The focus areas include robotics, AI, electric vehicles, hydrogen, and software-defined vehicles (SDVs)—technologies identified as future growth drivers. All these initiatives are interconnected with the development of a robotics ecosystem. The groups ambition extends beyond simple robot manufacturing to encompass a complete value chain in the robotics industry, including product subscriptions, foundry services, training hubs, and AI data learning.

Hyundai believes that the key to success in the robotics market will not solely depend on performance but rather on how effectively these technologies are utilized in real-world applications. Even with superior performance, if a robot fails to gather data on the manufacturing floor, it will not contribute to product improvement and may become obsolete in the competitive market. This understanding is why Hyundai Motor Group has committed to investing 125.2 trillion won over five years in the physical AI market. By leveraging the vast amounts of on-site data generated by its subsidiaries in automotive, robotics, steelmaking, and logistics, the group aims to enhance its global manufacturing capabilities and carve out a significant market share.

Hyundai views South Korea as an optimal location for the robotics industry, emphasizing that design is a core component of their strategy. Plans are underway for a robotics metaplant and an AI data center in Jeollanam-do, with Georgia also under consideration for expansion. The goal is to establish a comprehensive ecosystem that supports not only the development of advanced robotics but also their practical applications in various industries, ensuring that South Korea remains at the forefront of this rapidly evolving field.
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