South Korea: Hyundai aiming to become a tech firm

For a few weeks this year, South Korean carmaker Hyundai was dusted 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 car project, but this week it said the talks were over

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However, this is by no means the end of Hyundai’s push into technology.

The car firm has been investing heavily in new technology with a string of partnerships, acquisitions and investments within the tech space.

Its takeover of robotics firm Boston Dynamics last year was a clear indication of the direction it is taking – into cutting-edge technology.

The whole auto industry has been forced to innovate as the move towards electric cars and autonomous vehicles accelerates.

Hyundai has been criticised in the past for lagging behind rivals in adopting emerging technologies but is fast catching up, sealing a string of alliances and investments with technology groups recently.

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

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

Its aggressive electric car ambitions will see it launch 12 new BEV models over the next four years, and fully electrify its line-up around the globe by 2040.

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

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“It’s very clear where Hyundai sees its future. It’s a brand that wants to disrupt and push forward, to break up the status quo,” says Mr Hardcastle.

The purchase of a majority stake in Boston Dynamics in a $1.1bn (£810m) deal in December was seen as a major step to becoming a leader in car technology.

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

“Hyundai is being very responsive to the dynamic market trends,” says Bakar Sadik Agwan, senior automotive consulting analyst at GlobalData.

“With the automotive industry getting more dynamic day by day due to the fast technological advancements, companies need to transform their business strategies to secure their position in the future mobility era. Hyundai seems to be well on track in this direction.”

Huawei
Huawei is also working on its own smart car

The fact that Apple was considering a partnership with Hyundai shows how far the carmaker has advanced.

And there are plenty of other projects in the pipeline.

Electric vehicles, autonomous driving and even the potential for passenger drones are all possible projects for Hyundai and its sister company Kia.

“We are receiving requests for co-operation in joint development of autonomous electric vehicles from various companies, but they are at an early stage and nothing has been decided,” Hyundai said.