Hyundai: The carmaker aiming to become a tech firm

For a few weeks this year, South Korean carmaker Hyundai was cleaned with the Apple magic.

Last month Hyundai let slip that it was in talks with the maker of the iPhone to co-operate on a cars and truck task, but this week it stated the talks were over.

Nevertheless, this is by no means the end of Hyundai’s push into innovation.

The car company has actually been investing greatly in brand-new innovation with a string of partnerships, acquisitions and financial investments within the tech area.

Its takeover of robotics company Boston Characteristics last year was a clear sign of the instructions it is taking – into cutting-edge technology.

The whole auto market has actually been forced to innovate as the relocation towards electric cars and autonomous lorries speeds up.

Hyundai has been criticised in the past for dragging competitors in adopting emerging innovations but is quick capturing up, sealing a string of alliances and financial investments with innovation groups just recently.

” Hyundai has a different set of motivations and more incentive to press the limit. They have actually been a lot more aggressive in reinventing themselves,” says Dale Hardcastle, a partner at consultancy firm Bain.

Hyundai has actually been ramping up the electrification of its line-up of cars with a dedicated battery electric automobile (BEV) range called Ioniq.

Its aggressive electric automobile aspirations will see it introduce 12 brand-new BEV designs over the next four years, and completely energize its line-up around the globe by 2040.

Beyond battery electric vehicles, Hyundai has been hectic developing charging points and hydrogen refuelling stations.

” It’s really clear where Hyundai sees its future. It’s a brand that wishes to disrupt and press forward, to separate the status quo,” says Mr Hardcastle.

More Technology of Company

The purchase of a bulk stake in Boston Characteristics in a $1.1 bn (₤ 810m) handle December was viewed as a major action to ending up being a leader in car technology.

Boston Characteristics is a pioneer in consumer robotics, while it has a shared interest with Hyundai in autonomous driving and smart factories.

” Hyundai is being really responsive to the dynamic market trends,” states Bakar Sadik Agwan, senior vehicle consulting expert at GlobalData.

” With the automobile industry getting more dynamic day by day due to the fast technological developments, business require to transform their company techniques to protect their position in the future mobility period. Hyundai seems to be well on track in this direction.”

The reality that Apple was thinking about a collaboration with Hyundai shows how far the carmaker has actually advanced.

And there are lots of other tasks in the pipeline.

Electric vehicles, self-governing driving and even the capacity for traveler drones are all possible jobs for Hyundai and its sibling company Kia.

” We are receiving requests for co-operation in joint development of self-governing electric automobiles from numerous business, however they are at an early phase and nothing has been decided,” Hyundai stated.

” The stock market loves vehicle business who are tech companies, as seen with Tesla’s increase,” says Sarwant Singh, managing partner at experts Frost & Sullivan.

” This partnership [with Apple] would have even more highlighted Hyundai’s position as a tech innovator.”

Many industry professionals expect Hyundai to consolidate fellow South Korean corporation and tech huge Samsung in establishing smart electric automobiles.

” Hyundai Motor Group is exploring locations of potential collaboration with diverse service partners around the globe including Samsung Group, however there is no specific initiative we can recognize at this time,” Hyundai spokesperson Jin Cha informed the BBC.

” In line with this, we have our doors open up to potential partners, especially international business which are international leaders in their respective domains.”

Modern touch

Hyundai, which suggests modernity in English, was established by Chung Ju-yung in 1947. The group makes products across the motor, building, steel and innovation markets.

Mr Chung handed over the reins in 2000 to his son Chung Mong-koo who ran the business for 20 years prior to proceeding to become honorary chairman last October.

He was prospered by his kid Euisun Chung in a relocation many feel will provide impetus to the world’s fifth biggest carmaker’s push into electrical lorries.

In a welcome speech Mr Chung, 49, stated he hoped to produce alter at Hyundai throughout a duration of rapid technological innovation within the international car industry.

He recognized autonomous driving, electrification, hydrogen fuel cells, robotics and urban air mobility (UAM) – market lingo for flying vehicles – as his future efforts.

” Carmakers require to prepare themselves for the future. By not checking out potential new company models, these companies are setting themselves up for obsolescence,” states Sam Fiorani from Global Vehicle Forecasting.

Future focused

The changes began simply over a year ago when Hyundai signed a joint endeavor with self-driving technology firm Aptiv in a $4bn partnership called Motional.

Ireland-based Aptiv provides the innovation that helps incorporate information coming from the sensing units that self-driving cars and trucks depend on.

” Car makers require to become technology business. The old design of simply making and selling automobiles and trucks is disappearing and the future is so much more,” adds Sarwant Singh at Frost & Sullivan.

Hyundai likewise has an ambitious plan to construct electrical air taxis and wants to get them flying by 2028.

Tech titans

A current report by Boston Consulting Group (BCG) took a look at the potential customers of tech companies like Apple and Google becoming substantial carmakers in the future offered their recent advances.

Tech giant Google has its own self-driving system called Waymo, which already makes industrial self-driving taxis, while it emerged in December that Huawei is working on its own smart vehicle.

However BCG concluded that the reverse might occur instead.

” The car manufacturers that digitally transform the fastest, ending up being a company that looks more like Apple or Peloton.

” It could be argued that such car manufacturers would have the scale to include themselves to the list of future tech giants.”

Hyundai is wanting to be one of them.

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