Hyundai’s chairman warns tough year ahead for global auto industry amid rising geopolitical uncertainty

Chung Euisun, Executive Chair of Hyundai Motor Company, has cautioned about a challenging year for the global auto industry and stated that the South Korean automaker must improve its AI capabilities.In his New Year’s speech, Chung cautioned that while geopolitical crises may affect operations in some areas and may result in a suspension of commerce, global trade disputes and growing competition would limit industry profitability.
US President Donald Trump’s tariff policy, which levies a 15% tax on Korean-made automobiles, has severely hurt the biggest South Korean automaker. In just the third quarter, Hyundai lost almost 1.8 trillion won ($1.2 billion) as a result.
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Chung called for cooperation with a variety of partners to increase Hyundai’s AI capability, adding that the company is lagging behind competitors in the AI race.

Hyundai established the Robotics Lab in 2019 and bought Boston Dynamics Inc. two years later as part of its AI and robotics push. Over the next five years, it intends to invest 125 trillion won on robots, artificial intelligence, and other cutting-edge technology in South Korea.

According to Vice Chair Chang Jaehoon, Motional, an autonomous driving joint venture with parts manufacturer Aptiv Plc, intends to commercialise fully autonomous Ioniq 5 robotaxis in Las Vegas by the end of this year.