Hyundai is investing heavily in the development of self-driving technology through Motional, an autonomous driving startup. The South Korean automaker aims to proactively develop autonomous driving technology and internalize core technology. In March 2020, Hyundai and Aptiv, an Irish-American automotive technology company, established Motional.
Hyundai has announced that it will invest nearly $1 billion in Motional. This investment includes $487,889,235 for a capital increase and an additional $456,246,344 to acquire 11% of Aptiv’s shares in Motional. Following this investment, Hyundai will have a total share of 66.8% in Motional. The additional funding will enhance Motional’s technological competitiveness and lay the groundwork for expanding synergy between autonomous driving units within Hyundai Motor Group.
Despite significant operating losses over the past three years, Motional has demonstrated its self-driving technology in the United States with the Hyundai Ioniq 5 robotaxi. The self-driving technology passed a typical United States driver’s license test with the Ioniq 5. After incurring significant operating losses, Aptiv has announced plans to stop allocating capital to Motional and reduce its ownership share in the self-driving startup. However, Hyundai remains committed to investing in and supporting the development of autonomous driving technology through Motional.
