Hyundai AutoEver to invest $1.3 bn for next 5 yrs to achieve $3.1 bn revenue by 2026

CEO Suh Jung-sik

Hyundai AutoEver Corp., in-house IT unit of South Korean auto giant Hyundai Motor Group, pledged to spend 1.5 trillion won ($1.3 billion) over the next five years to achieve revenue of 3.6 trillion won with improvement in automotive software and cloud-based connectivity solutions.

Under the ambitious investment scheme, the company aims to achieve 830 billion won sales from the subscription business, taking up 23 percent of the entire revenue, with an average annual growth of 18 percent, it announced during the investor day online presentation on Wednesday.

Hyundai AutoEver focused on three businesses of “automotive software, enterprise IT and urban air mobility/robotics” in its future strategy.

For the vehicle software business, CEO Suh Jung-sik promised to expand the vehicle software platform, establish integrated development environment, and offer cloud-based vehicle connectivity service, while emphasizing the importance of technology “internalization and standardization.”

It plans to develop own standard software platforms Mobilgene Classic and Mobilgene Adaptive based on the international standard AUTomotive Open System Architecture (AUTOSAR) for supply to domestic OEM businesses and part makers.

As part of efforts to provide customized service, the company is preparing cloud-based connectivity service. Advanced driver assistance system and other customized services will be controlled in cloud system.

For the enterprise IT business, it aims to bring digital innovation to all production elements from facility to logistics, quality and energy for enhanced corporate productivity through smart factory services.

Hyundai AutoEver will also provide an integrated robotics control platform to optimize the run time and secure the control safety under its new UAM and robotic business. To maintain the latest operational performance of UAM and robots, over-the-air update software will be operated synthetically as well.

Separately, Hyundai AutoEver disclosed an operating profit of 33.6 billion won, up 26.5 percent on year, with sales gaining 31.7 percent to 514.7 billion won in the second quarter, thanks to increased ICT & smart factory service in Indonesia and smart workplace service at home.

Hyundai AutoEver shares closed Wednesday 4.12 percent higher at 126,500 won.

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