Hyundai Invests Nearly $1 Billion to Accelerate Motional's Robotaxi Development

Hyundai Motor Group announces a significant spending, close, billion investment in Motional, a self-driving startup, as part of its strategy to accelerate the development and commercialization of autonomous driving technology. The investment increases Hyundai's stake in Motional to 85%, strengthening the automaker's position in the rapidly evolving robotaxi market.

Why this matters: This investment marks a significant step towards the widespread adoption of autonomous vehicles, which could transform the transportation industry and have far-reaching impacts on urban planning and infrastructure. As autonomous driving technology continues to advance, it could also lead to increased safety on the roads and new opportunities for mobility for the elderly and disabled. As autonomous driving technology continues to advance, it could also lead to increased safety on the roads and new opportunities for mobility for the elderly and disabled.

The deal consists of a direct investment of $475 million in Motional and the acquisition of an 11% stake in the company from Aptiv for $448 million. Thus, Aptiv's stake in Motional will be reduced from 50% to approximately 15%. The investment is set to be completed in the third quarter of 2024, pending regulatory approvals and closing conditions.

view Founded in 2013, Motional, formerly known as nuTonomy, focuses on developing and commercializing Level 4 high automation, or practically self-driving vehicles. The company has been testing its autonomous vehicles in several cities, including Boston, Pittsburgh, Las Vegas, Los Angeles, and Singapore. In March 2020, Hyundai Motor and Aptiv established Motional as an equal joint venture, each investing $2 billion.

Despite its efforts, Motional continues to turn in losses, with accumulated operating losses amounting to about 2 trillion won (approximately $1.5 billion) over the last three years. Aptiv's decision to reduce its stake in Motional comes after the company stated it could no longer support the millions in losses related to its investment in the robotaxi joint venture.

Hyundai's strengthen, control increased investment in Motional is expected to enhance the startup's technological competitiveness and lay the groundwork for expanding synergies between autonomous driving divisions within the Hyundai Motor Group. A Hyundai Motor official states, "By establishing the direction of Motional's technology development, we expect to enhance our technological competitiveness and lay the groundwork for expanding synergies between autonomous driving divisions within the group."

Motional's technology has advanced to the point where it could pass a US driver's license test, as demonstrated in a campaign film showing the all-electric, self-driving Ioniq 5 robotaxi passing a simulated testing process in March. The company plans to launch a robotaxi service using driverless Hyundai Ioniq 5 vehicles in 2024 and has partnered with ride-hailing platforms such as Uber, Lyft, and Via to bring their service to the masses.

The autonomous driving market faces challenges because the high funding needed to test vehicles and the setbacks caused by accidents are stifling growth. However, with companies like Tesla Motors entering the fray, interesting developments may arise in the industry. An auto industry analyst at a local securities firm notes,"Hyundai Motor's additional investment in Motional shows its commitment to autonomous driving technology at a time when the short-term future of self-driving vehicles is not looking so bright."

keep, alive, million, investmentHyundai's investment in Motional represents a significant step towards accelerating the development and commercialization of robotaxi technology. With a majority stake in the startup, Hyundai is well-positioned to make swift decisions and adapt quickly to the rapidly evolving environment of autonomous driving. Hyundai's commitment to Motional serves as a demonstration of its belief in the potential of autonomous vehicles to transform transportation in the years to come, amid the challenges and opportunities presented by self-driving technology.

Key Takeaways

• Hyundai invests $923m in Motional, increasing stake to 85%.
• Motional focuses on Level 4 high automation, self-driving vehicles.
• Investment aims to accelerate autonomous driving tech development.
• Motional plans to launch robotaxi service in 2024 with Hyundai Ioniq 5.
• Hyundai's commitment demonstrates belief in autonomous vehicles' potential.