“SDV Transition Is Inevitable” — Hyundai AutoEver Expected to Expand Profitability

[Financial News] Korea Investment & Securities maintained its “Buy” rating and target price of KRW 700,000 for Hyundai AutoEver on the 8th, citing expectations for improved profitability driven by the transition to software-defined vehicles (SDVs).
Changho Kim, an analyst at Korea Investment & Securities, noted, “The transition to SDVs represents a paradigm shift from cars as machines that are finished once sold to smartphones that are continuously updated. Just as smartphones require Android, SDVs need an automotive operating system (OS) capable of delivering the same functions regardless of which semiconductor is used.”
As a result, analysts expect the adoption of Mobilgene, Hyundai Motor Group’s standard automotive software (SW) platform developed by Hyundai AutoEver, to expand and drive higher profitability.
Kim explained, “Once a hardware abstraction layer (HAL) is introduced and hardware is separated from software, a standards-based software layer applied commonly across control units becomes essential. At Hyundai Motor Group, this layer has been standardized as Mobilgene, which also includes middleware modules. When developing a new control unit or changing semiconductors, Hyundai AutoEver develops and supplies Mobilgene for the new chip. It recognizes revenue from automakers through development fees and per-control-unit licensing fees.”
He added, “As vehicles evolve toward centralized architectures, configurations will shift from those centered on simple microcontroller units (MCUs) to combinations of application processors (APs) for high-performance computing (HPC) and high-specification multicore MCUs. With the shift to centralized architectures, software complexity and the unit price per control unit increase, potentially raising licensing revenue per vehicle.”
The analyst also highlighted the expanding adoption of Hyundai Motor Group’s next-generation infotainment system, Pleos Connect. Kim forecast, “Pleos Connect was first applied to The New Grandeur model in May, and the group plans to equip approximately 20 million vehicles with it by 2030. Hyundai AutoEver will be responsible for the integrated maintenance of core applications and regular upgrades of Android Automotive OS (AAOS), which should enable profitability to expand alongside higher unit prices.”

[email protected] Seo Min-ji Reporter