All data are based on the daily closing price as of July 19, 2024

Hyundai Motor Group Advances Into Software-Defined Vehicle Era with Strategic R&D Overhaul

Shifting focus to connected car services, Hyundai aims to double subscribers by 2025, investing heavily in software technology
South Korea
h 005380.KO Blue Chip 150
Share this on

Hyundai Motor Group is poised to revolutionize its research and development approach, emphasizing software-defined vehicles (SDVs). This strategic move involves absorbing the electronics, infotainment, and autonomous driving divisions of its main R&D center into 42dot Inc., the group’s self-driving tech arm. The transformation, earmarked for next month, signifies a major pivot towards connected and personalized services in the SDV era.

This reorganization at the Hyundai Kia Namyang R&D Center in Gyeonggi Province will see relevant employees moving to the group’s software headquarters in Pangyo, a hub akin to Silicon Valley. The alignment aims to streamline software divisions, which are currently scattered across the group, enhancing consistency and collaboration while accelerating R&D processes.

Hyundai’s commitment to this direction was evident in its 2022 acquisition of 42dot for $330 million, underlining the strategic importance of the startup founded by Song Chang-hyeon, now heading the Transportation-as-a-Service (TaaS) division.

Under the Hyundai umbrella, 42dot has grown significantly, absorbing key functions from the TaaS division and AIRS Company, Hyundai’s AI-focused startup. In April, Hyundai and Kia bolstered 42dot with a substantial $770 million investment, reinforcing its role as the group’s global software center.

The upcoming integration of the R&D center’s software development divisions into 42dot is expected to triple its workforce, reflecting Hyundai’s commitment to transforming all its models into SDVs. Hyundai Motor Group is implementing cutting-edge over-the-air (OTA) software update technology across its range, aiming to expand its connected car services to 10 million subscribers, a figure it plans to double by 2025.

In a decisive move, Hyundai Motor Group plans to invest $14 billion by 2030, focusing on connectivity and autonomous driving technologies. This investment underscores the group’s determination to reorganize its R&D operations, significantly bolstering its future mobility capabilities.

Share this on
Jakota Newsletter

Stay ahead in the JAKOTA stock markets with our roundup of vital insights

Icon scroll to top