Hyundai bets on robots, self-driving despite $1.5B loss

May 29 (Asia Today) -- Hyundai Motor Group's three core future businesses -- robotics, autonomous driving and advanced air mobility -- have recorded more than 2.2 trillion won, or about $1.5 billion, in accumulated losses over the past five years, company filings showed.

The losses are widely seen as the result of large-scale upfront investments aimed at securing leadership in the future mobility market. Despite the losses, Hyundai has begun to show visible progress in robotics and autonomous driving, raising expectations for long-term growth.

According to the Financial Supervisory Service's electronic disclosure system, Hyundai Motor Co.'s book value in key future business affiliates stood at 4.41 trillion won, or about $2.9 billion, as of the first quarter.

The total included 2.72 trillion won, or about $1.8 billion, in HMG Global, 1.49 trillion won, or about $990 million, in Motional and 197.5 billion won, or about $131 million, in Supernal.

The accumulated equity-method losses from the three affiliates totaled 2.21 trillion won, or about $1.5 billion. The losses included 487 billion won, or about $323 million, from HMG Global, 888.5 billion won, or about $589 million, from Motional and 835.4 billion won, or about $554 million, from Supernal.

That means more than half of the combined book value has already been reflected as accounting losses.

HMG Global, established by Hyundai Motor Group in the United States in 2022, serves as an investment holding company and global control tower for the group's robotics and artificial intelligence businesses. Hyundai Motor holds 49.5%, Kia Corp. 30.5% and Hyundai Mobis Co. 20.0%.

HMG Global also holds a 56.25% stake in Boston Dynamics, the U.S. robotics company developing the humanoid robot Atlas.

Boston Dynamics recently unveiled a road map to establish an annual production system for 30,000 Atlas robots by 2028. Of those, 25,000 units are expected to be introduced gradually at Hyundai Motor production sites.

The group is considering deployment first at Hyundai Motor Group Metaplant America in Georgia, then expanding use to Kia's Georgia plant.

Boston Dynamics' corporate value has surged since Atlas was unveiled at CES 2026 in Las Vegas in January. Market estimates now range from 30 trillion won to 60 trillion won, or about $19.9 billion to $39.8 billion. Some securities firms and global investment banks say the company could eventually be valued at more than 100 trillion won, or about $66.3 billion.

Industry officials say Hyundai Motor could secure substantial future investment funds if Boston Dynamics goes public next year.

Motional, which leads Hyundai's autonomous driving business, has not yet escaped losses but is seen as entering the commercialization stage. Motional was established in 2020 as an autonomous driving joint venture between Hyundai Motor Group and global auto parts supplier Aptiv.

Its shareholders include Hyundai Motor with 44.20%, Kia with 24.25% and Hyundai Mobis with 17.32%.

In March, Motional and Uber launched an IONIQ 5-based robotaxi service in Las Vegas. The service currently operates with a vehicle operator monitoring the system from the driver's seat, but the company aims to launch fully driverless service by the end of the year.

The key challenge is whether Motional can use artificial intelligence-based autonomous driving technology to operate safely across complex urban routes.

Supernal, which oversees Hyundai's advanced air mobility business, is considered the most uncertain of the three future businesses. Supernal was established by Hyundai Motor Group in 2020, with Hyundai Motor holding 44.44%, Hyundai Mobis 33.33% and Kia 22.22%.

The company has already recognized losses far above its book value.

Concerns over Supernal's business viability have grown after management changes last year and large-scale layoffs in March. The company, however, says it will continue focusing on developing commercially viable aircraft because advanced air mobility remains a key pillar of Hyundai's future mobility vision.

Experts said Hyundai's large losses should be viewed not simply as deficits but as the cost of securing an early position in future markets.

"At a time when Toyota and Volkswagen Group are reducing production because of slowing market growth, Hyundai Motor's expanded future investment is in some ways inevitable," said Lee Hang-koo, a research fellow at the Korea Automotive Technology Institute. "But Supernal still faces significant business uncertainty."

"Hyundai continues to invest in robotics, autonomous driving and advanced air mobility despite losses because this is ultimately a race for future dominance," said Lee Ho-geun, a professor of automotive engineering at Daeduk University. "In the future mobility market, securing data, internalizing technology and gaining an early ecosystem advantage are more important than short-term profit."

-- Reported by Asia Today; translated by UPI

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