Hyundai Motor Company Looks Beyond Cars to Robotics... Group Manufacturing Infrastructure Provides a Platform for Growth

[Financial News]  NH Investment & Securities said that deploying robots in factories and monetizing software would be necessary for Hyundai Motor Company to receive a further revaluation. While hybrid electric vehicle (HEV) sales help protect the profitability of its core business, the key to the next share-price rise will be whether investments in robotics and software-defined vehicles (SDVs) translate into actual revenue and profits. The brokerage therefore maintained its “Buy” rating and target price of 540,000 won.
On the 27th, Haneul, an analyst at NH Investment & Securities, cited Hyundai Motor Company’s ability to use its automotive manufacturing infrastructure to commercialize physical AI as a competitive strength.
The analysis is that, in addition to investing profits from its automotive business in new ventures, Hyundai can use the group’s factories and manufacturing data to develop and validate robots.
The key is the humanoid robot Atlas. Using group-affiliated factories as an initial testing ground would allow the company to accumulate data in real production environments and expand the scale of deployment. The ability to secure manufacturing sites and initial sources of demand within the group was presented as an advantage for commercialization.
However, the competitive landscape differs between automotive and non-automotive technologies, the analyst said. Hyundai is seeking to gain an early lead in robotics, but in advanced driver-assistance systems (ADAS) and SDVs, it is still investing in facilities and development while catching up with competitors. Hyundai is pursuing a strategy of accelerating the adoption of technology through its collaboration with NVIDIA Corporation, and later developing and deploying its own Atria AI. The analyst expected it would take time for paid software revenue to materialize.
The analyst said that the criteria for valuing the company in its share price are also shifting from investment plans to business results. Hyundai Motor Company received a revaluation once on expectations for new businesses following the unveiling of Atlas and its AI robotics strategy, but much of the premium that had formed before revenue and operating profit were confirmed was subsequently reversed.
Haneul cited “the actual deployment of Atlas in factories, securing external customers, and improving Boston Dynamics’ earnings” as conditions for the next revaluation.
He added, “In the automotive business as well, mass production of SDVs and ADAS scheduled for after 2028 must proceed as planned to prove that software itself can generate revenue,” and “The key question is no longer how much is invested in new businesses, but how much can be earned from the assets invested in; that is what will determine corporate value.” 


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