We use cookies that are necessary to make our site work as well as analytics cookie and third-party cookies to monitor our traffic and to personalise content and ads.
Please click “Cookies Settings” for details on how to withdraw your consent and how to block cookies. For more detailed information about the cookies we use and of who we work this see our cookies notice
Necessary cookies:
Necessary cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website and cannot be switched off in our systems. You can set your browser to block or alert you about these cookies, but some parts of the site will then not work. The website cannot function properly without these cookies.
Optional cookies:
Statistic cookies help website owners to understand how visitors interact with websites by collecting and reporting information
Marketing cookies are used to track visitors across websites. The intention is to display ads that are relevant and engaging for the individual user and thereby more valuable for publishers and third party advertisers. We work with third parties and make use of third party cookies to make advertising messaging more relevant to you both on and off this website.
Hyundai: from capable carmaker to robotics pioneer
Dhiraj Bajaj
CIO, Asia Fixed Income and Equities
Ashley Chung
Portfolio Manager
Wee Jia Low
Portfolio Manager
key points.
Long seen as a reliable automaker, Hyundai Motor Group1 has quietly undertaken a major reinvention as a serious robotics pioneer
The firm’s 2021 acquisition of robotic engineering and design expert Boston Dynamics for USD 880 million marked a deliberate leap into the future
It plans to deploy humanoid robots throughout its factories and supply chain, before rolling out a ‘robotics-as-a-service’ model to industrial customers worldwide.
One of South Korea’s biggest companies, Hyundai Motor Group (Hyundai) is the world’s third largest vehicle manufacturer. The business has shown resilience amid fluctuating global demand, selling more than 4 million vehicles worldwide in both 2024 and 2025.2
Less well known is the firm’s pivot towards humanoid robotics and ‘physical AI’ – a technology that enables machines to make reasoned judgements and act in the real world. Since acquiring leading US robotics company Boston Dynamics five years ago, Hyundai has quietly built a credible robotics-manufacturing franchise as a core future strategy.
Hyundai Motor Group: the investment view
Growth theme: robotics pioneer and leading player in physical AI; its integrated supply chain positions it well to scale and roll out humanoid robotics
Fundamental strengths: a global auto manufacturer with strong execution; its flexible strategy allocates capacity across powertrain technologies to meet unpredictable customer demand
Differentiation: The firm’s market cap has more than doubled in two years, reflecting real, near-term robotics optionality and resilient auto profits supported by hybrid flexibility, EV localisation and a robust SUV line-up.
Hyundai shares have staged a striking re-rating as the company repositions from a capable manufacturer of value-for-money cars to a pioneer blending software, advanced manufacturing and humanoid robotics in physical AI. Still in their commercial infancy, physical AI systems – such as robots and self-driving cars – can perceive, reason and perform complex actions in the real world without ongoing human intervention.
At the same time, the company has effectively navigated a global market in which electric vehicle uptake proved uneven and slower than expected before the Iran war. By offering a range of powertrains adapted to local market preferences, Hyundai has been able to weather this challenging environment.
sign up for our monthly newsletter.
Thank you for subscribing to our monthly newsletter!
There was an error registering your subscription. Please email loim-digital@lombardodier.com.
A visionary bet on robots
In June 2021 Hyundai completed the purchase of an 80% stake in Boston Dynamics3, signalling a shift from traditional auto manufacturer to forward-looking smart mobility and robotics platform. The deal provides access to pioneering agile robotics technology, including Atlas (a humanoid built for industrial work and intelligent automation), Stretch (a mobile, intelligent robotic arm) and Spot (a four-legged robot for dynamic sensing and industrial inspection).4
In 2022, Hyundai spent USD 400 mn to launch the Boston Dynamics AI Institute, focused on enabling robots to work safely around humans. Alongside cognitive AI (the ‘thinking’ element), this includes athletic AI (combining high-performance mechanical design with real-time control), and organic hardware design inspired by nature’s own ‘engineering solutions’.
The supply chain required to commercialise robots at scale
Crucially, the wider Hyundai group boasts an integrated supply chain perfectly equipped to commercialise robotics at scale. Hyundai Mobis is expanding into robot actuators – the costly electric, hydraulic or pneumatic ‘muscles’ that enable movement. Affiliate AutoEver provides software and systems integration, while parts manufacturer Hyundai WIA is already commercialising autonomous logistics robots across group plants. This ‘hardware-plus-software’ stack allows Hyundai to internalise key costs and intellectual property as robots move from demonstration into deployment.
The wider Hyundai group boasts an integrated supply
chain perfectly equipped to commercialise robotics at scale
Beyond the group, Hyundai is well integrated into South Korea’s broader technology ecosystem, supplying critical humanoid robot components. For example, Boston Dynamics already sources Atlas’ vision system from LG Innotek and its batteries from Samsung SDI5 (Figure 1).
Hyundai’s physical AI roadmap is already moving into the operational stage6. In April 2025 it announced plans to integrate ‘tens of thousands’ of Boston Dynamics robots across its manufacturing facilities7, targeting full deployment in assembly operations by 2030.
At the CES trade show in Las Vegas in January, the group set out a broader AI robotics strategy aimed at positioning itself to lead a ‘human-centred robotics era’. The ambition is to build a physical AI ecosystem linking South Korea and the US for end-to-end development and deployment.
Having proven and refined Boston Dynamics robots across its own operations and supply chain, Hyundai plans to expand sales to external businesses. It will also provide ongoing services, including monitoring, software upgrades, maintenance, repair and overhaul.8
FIG 1. Boston Dynamics’ Atlas humanoid robot9
A flexible powertrain strategy gains share as the market shifts
While robotics is the long-term headline, Hyundai’s near-term execution continues to rest on a highly flexible vehicle production strategy in an unpredictable market. It can allocate capacity to a full range of powertrains: internal combustion engines, full battery electric vehicles (BEV), hydrogen-powered fuel cell electric vehicles, hybrids and plug-in hybrids.
In the face of tough global competition and fast growing Chinese brands, this agility is paying off. Despite trade frictions, sales rose 2% year on year in 202510, while revenue increased 6.3% to a record KRW 186.3 trillion.11 The performance reflects a strong BEV lineup (sales up 17%), disciplined mix management and localisation, with 32% growth in high value hybrid sales and robust premium Genesis sales in the US.12
subscribe to investment insights and strategy updates
Preference Centre
From ‘value trap’ fears to record market cap
Not long ago, Hyundai shares traded on depressed multiples as part of concerns around the long-term outlook for global automakers outside China. As investors have recognised the firm’s unique combination of resilient and flexible vehicle manufacturing and long-term robotics potential, its market capitalisation has doubled over two years, sharply outperforming rivals (Figure 2).
FIG 2. Hyundai’s shares vs global auto makers (Dec 2023-Feb 2026)13
Exciting long-term growth built on solid foundations
Hyundai Motor’s record valuation reflects its ability to manage today’s powertrain transition while building a credible and diversifying physical AI business. As a high-quality business harnessing durable growth opportunities to drive sustainable earnings expansion, the company remains a core, high-conviction position in our Asia and EM High Conviction strategies.14
1 Any reference to a specific company or security does not constitute a recommendation to buy, sell, hold or directly invest in the company or securities. It should not be assumed that the recommendations made in the future will be profitable or will equal the performance of the securities discussed in this document. For illustrative purposes only. Important information on case studies.
The case studies provided in this document are for illustrative purposes only and do not purport to be recommendation of an investment in, or a comprehensive statement of all of the factors or considerations which may be relevant to an investment in, the referenced securities. The case studies have been selected to illustrate the investment process undertaken by the Manager in respect of a certain type of investment, but may not be representative of the Fund’s past or future portfolio of investments as a whole and it should be understood that the case studies of themselves will not be sufficient to give a clear and balanced view of the investment process undertaken by the Manager or of the composition of the investment portfolio of the Fund now or in the future.
2 Hyundai. Hyundai Motor Announces 2025 Annual and Q4 Business Results. 29 January 2026.
3 Hyundai, https://www.hyundai.com/worldwide/en/newsroom/detail/hyundai-motor-group-completes-acquisition-of-boston-dynamics-from-softbank-0000000516. 21 June 2021.
4 Boston Dynamics, Robots for the Real World. Undated.
5 Any reference to a specific company or security does not constitute a recommendation to buy, sell, hold or directly invest in the company or securities. It should not be assumed that the recommendations made in the future will be profitable or will equal the performance of the securities discussed in this document. For illustrative purposes only.
6 With investor interest in physical AI rising, a potential IPO for the robotics company looks likely in 2027-2028. Kim, Douglas. Boston Dynamics - Rights Offering of 1.2 Trillion Won Expected; Potential IPO in 2027/2028 in NASDAQ. Douglas Research Insights. 4 August 2025.
7 Boston Dynamics, Boston Dynamics & Hyundai Motor Group Expand Collaboration to Drive Mobility Manufacturing & Innovation. 3 April 2025.
8 Hyundai, Hyundai Motor Group Announces AI Robotics Strategy to Lead Human-Centered Robotics Era at CES 2026. 6 January 2026.
9 LOIM, company data, Robozaps, Nomura estimates. For illustrative purposes only. As of April 2026. Any reference to a specific company or security does not constitute a recommendation to buy, sell, hold or directly invest in the company or securities. It should not be assumed that the recommendations made in the future will be profitable or will equal the performance of the securities discussed in this document. For illustrative purposes only.
10 Hyundai, Hyundai Motor Reports 2025 Global Retail Sales Results, 21 January 2026.
11 Hyundai, Hyundai Motor Announces 2025 Annual and Q4 Business Results, 29 January 2026.
12 Hyundai, Hyundai Motor Reports 2025 Global Retail Sales Results, 21 January 2026.
13 companiesmarketcap.com, LOIM. As at February 2026. For illustrative purposes only. Any reference to a specific company or security does not constitute a recommendation to buy, sell, hold or directly invest in the company or securities. It should not be assumed that the recommendations made in the future will be profitable or will equal the performance of the securities discussed in this document. Past performance is not a reliable indicator of future results.
14 As at April 2026. Holdings and/or allocations are subject to change.
important information.
For professional investors use only
This document is a Corporate Communication for Professional Investors only and is not a marketing communication related to a fund, an investment product or investment services in your country. This document is not intended to provide investment, tax, accounting, professional or legal advice.
