Hyundai Motor Group chief marks 6 years at helm with physical AI ambitions
Hyundai Motor Group Executive Chairman Chung Euisun applauds while delivering congratulatory remarks at the groundbreaking ceremony for Hyundai-POSCO Louisiana Steel in Donaldsonville, La., Sept. 4. Courtesy of Hyundai Motor
Self-driving setbacks, loss-making ventures test Chung Euisun's investment strategy
Hyundai Motor Group Executive Chairman Chung Euisun marks six years at the helm on Wednesday, spearheading the automaker’s transformation into a global top-three auto player by sales and steering it into a key future mobility player focusing on robotics, autonomous driving and artificial intelligence (AI).
The next phase of his leadership, however, will hinge on whether the group can turn its physical AI ambitions into profitable businesses. Chung is also tasked with addressing mounting pressure on its core automotive operations and labor relations.
Since taking the top post in 2020, Chung has overseen Hyundai Motor and Kia’s rise to the world’s third-largest automotive group by vehicle sales, behind Toyota and Volkswagen. The group maintained that ranking for four consecutive years through 2025. Hyundai Motor and Kia’s combined annual sales also surpassed the symbolic mark of 300 trillion won ($223 billion) for the first time last year.
The expansion reflects a strategy that combined electrification with a stronger focus on high-margin vehicles, including SUVs and Genesis luxury models. Hyundai Motor Group’s dedicated electric vehicle (EV) platform, E-GMP, helped broaden its EV lineup, while a diversified powertrain strategy has allowed it to capitalize on growing hybrid demand.
Hyundai Motor Group Executive Chair Chung Euisun, fourth from right, poses with the group's key executives, celebrating the debut of Genesis GV90 Neolun full-size luxury SUV in San Francisco, Aug. 19. Courtesy of Genesis
In the first half of this year, Hyundai Motor’s global hybrid sales rose 18 percent year-on-year to 363,000 units, while Kia’s climbed 47 percent to some 316,000. Genesis, a brand Chung has championed since its launch, surpassed 1.5 million cumulative global sales in January.
“Compared with major global automakers, one of Chung's most significant achievements has been accelerating the shift to electrification and building a comprehensive lineup of affordable EVs and hybrids across Hyundai Motor and Kia," an official from the auto industry said.
Yet Chung is increasingly positioning the group for a future in which competitiveness will depend on more than vehicle sales.
At an AI summit in San Francisco in July, he said Hyundai Motor Group was moving beyond traditional manufacturing to become a physical AI solutions provider, expanding into autonomous driving, robotics and AI-powered factories.
The vision builds on investments made under his leadership. The group established Motional, the carmaker’s U.S. autonomous vehicle arm, in 2020, and acquired Boston Dynamics in 2021 to strengthen its robotics capabilities.
The group has also focused on developing vehicle software and autonomous driving systems by acquiring 42dot in 2022. Strategic partnerships with global technology companies, including Nvidia and Waymo, have further expanded its access to AI and autonomous driving capabilities.
The group has also begun building a deeper industrial ecosystem around its automotive operations across the globe. In Louisiana in the United States, Hyundai Steel recently broke ground on an electric arc furnace steel plant, as part of the group’s push to link steelmaking, parts production and vehicle manufacturing in the United States.
These investments reflect Chung’s ambition to make Hyundai Motor Group a technology-driven industrial company rather than simply a vehicle manufacturer. But the scale of the transformation also raises questions about execution, investment returns and the ability of the existing business to finance new growth engines.
Robotics and autonomous driving remain capital-intensive fields in which commercial returns can take years to materialize. Hyundai must demonstrate that its investments can translate into measurable productivity gains, recurring revenue and sustainable profits, rather than relying on technological milestones and long-term projections.
An Atlas humanoid robot learns automotive manufacturing tasks at Hyundai Motor Group Metaplant America in the U.S. state of Georgia, Sept. 21. Courtesy of Hyundai Motor
Labor relations present another immediate challenge. Hyundai Motor’s union staged a full-scale strike this year after wage negotiations stalled, marking the first such action since 2016. The resulting production disruptions are estimated to have caused more than 2.3 trillion won in cumulative lost sales.
The dispute highlights a tension at the heart of Chung’s transformation agenda. As AI and robotics reshape manufacturing, Hyundai will need greater flexibility in production and workforce management. Prolonged labor conflict could complicate the operational changes required to deploy new technologies and improve productivity.
The group must also navigate tariffs, regional competition and the cost of expanding production closer to major markets. Its investments in the U.S. and India are intended to strengthen local manufacturing and market access, but additional capacity alone will not guarantee stronger profitability.
Hyundai Motor Group Executive Chair Chung Euisun, right, talks with Nvidia CEO Jensen Huang at the San Francisco AI Summit, Sept. 24. Korea Times photo by Wang Tae-seok
Both 42dot and Motional remain unprofitable, despite continued investment in autonomous driving research. Hyundai Motor Group is still seen as lagging behind its rivals in the race to commercialize the technology.
“Physical AI could provide Hyundai Motor Group with another growth engine beyond vehicles, but turning that vision into a profitable business will require technological independence, disciplined capital allocation and stronger execution across the organization,” another industry official said.
Six years after taking the helm, Chung has established Hyundai Motor Group as a global automotive heavyweight. His next challenge is to show that the group can translate that industrial scale into a sustainable advantage in the age of physical AI, according to the official.