Hyundai Motor Group chief highlights vision of expanding physical AI ecosystem

(Hyundai Motor Group)

Hyundai Motor Group Executive Chair Euisun Chung unveiled the conglomerate’s 2026 strategic vision on Monday, presenting priorities focused on expanding the industrial ecosystem around physical artificial intelligence (AI).

The South Korean auto giant held a New Year’s meeting in a roundtable format on Monday, where senior executives exchanged views on future business strategies.

Participants included Chung, Group Vice Chair Chang Jae-hoon, Hyundai Motor Co. President José Muñoz, Kia Corp. President Song Ho-sung, and Hyundai Mobis Co. President Lee Gyu-suk.

Considering Chung’s schedule of visiting China as part of a business delegation, the discussion was pre-recorded and shared with employees.

During the meeting, Chung elaborated on AI‘s strategic importance. He noted that AI is fundamentally changing how companies and industries operate and rendering past formulas for success obsolete.

“In this wave of change, companies that fail to internalize AI capabilities will find it difficult to ensure their survival,” he said. “The only way for us to sustain our position as a global leader in the years ahead is to embed AI into our organizational DNA, not borrowing it from the outside.”

He also highlighted that as momentum shifts toward physical AI, Hyundai Motor Group‘s data from vehicles, robots, and manufacturing processes becomes increasingly differentiated.

“This is our powerful, unique weapon that big tech companies cannot easily replicate,” Chung said.

The chairman also stressed that the conglomerate’s “future hinges on whether we treat AI as a tool or adopt it as the engine of organizational evolution.”

“For Hyundai Motor Group, which possesses data, capital, and manufacturing capabilities, AI is a game we have a strong chance of winning,” he said.

Chung further called for a complete transformation in the way the group works by adopting an “agile” strategy focused on speed and flexibility.

“Above all, what matters most is fast and clear communication, and agile decision-making that is free from formality,” he said. “Leaders must step out into the field, engage directly with people, and understand the essence of situations firsthand.”

Regarding the conglomerate’s domestic mid- to long-term investment allocating 125.2 trillion won ($86.55 billion) through 2030, Chung said, “This will not simply be about expanding our scale, but about using it as an opportunity for our qualitative growth.”

“The most certain thing is the uncertainty of the future, and the most uncertain thing is certainty itself. Because we know the future is uncertain, we must ultimately build it together as one team,” he added.

Following Chung’s remarks, senior executives presented their individual business plans.

Vice Chair Chang outlined the group’s robotics vision centered on physical AI.

“We plan to build robot data-collection and performance-verification facilities with conditions almost identical to Hyundai Motor Group’s factories,” he said. “Through our collaboration with robotics subsidiary Boston Dynamics Inc., we are jointly advancing hardware and physical AI, combining world-class robotics R&D with manufacturing expertise.”

He also unveiled plans to accelerate efforts to secure software-defined vehicle (SDV) technologies, an area where it is viewed as lagging behind the United States and China.

Manfred Harrer, who was appointed president and head of Hyundai Motor Group’s R&D division this year, provided updates on technology development.

Harrer noted that through the SDV Pace Car (test vehicle), the conglomerate is proceeding with the establishment of a mass-production system and verification as originally planned.

He added that the tech capabilities secured through this process will be applied to next-generation models.