Chung Eui-sun, chair of Hyundai Motor Group, said, "When conditions around us become difficult and competition grows ever fiercer, the strongest pillar that will protect us is a structural reform that comes from deep self-reflection," noting that reflection is needed at every stage before product production. On future strategies such as Autonomous Driving, he set a goal to establish the group as a global company by internalizing artificial intelligence (AI) technologies rather than relying on external sources.
Hyundai Motor Group on the 5th released a New Year roundtable video held at its Yangjae headquarters in Seoul with key executives, including Chung. Chung; Vice Chair Jang Jae-hoon of Hyundai Motor Group; President Sung Kim, head of strategic planning; Kia President Song Ho-sung; and Hyundai Mobis President Lee Kyu-seok attended in person. Hyundai Motor President José Muñoz and R&D head (president) Manfred Harrer joined online.
Chung said, "2026 will be the year when the risk factors we have feared will come into reality before our eyes," adding, "Global trade wars will take on more varied forms, business conditions and profitability will deteriorate, and competitors' penetration into global markets is likely to spread more quickly." He emphasized that the possibility cannot be ruled out that business in certain regions could be suspended or hit due to geopolitical conflicts.
As ways to break through these crises, Chung proposed: ▲ structural reform stemming from deep reflection from the customer's perspective ▲ clear situational awareness that penetrates the essence and agile decision-making ▲ deep attention and expanded support for partners in the supply ecosystem ▲ bold cooperation with diverse partners to expand the ecosystem ▲ leading new standards for the industry and products.
On self-reflection for structural reform, he said, "We must ask whether our products sufficiently reflect the customer's view, whether there were compromises in planning or development, and whether we can truly stand proudly before customers regarding the quality we are confident in. If we look at ourselves honestly through these questions and make improvements, Hyundai Motor Group will not be shaken by any crisis."
For clear situational awareness and agile decision-making, he called on leaders to change their "ways of working." He said, "Leaders should not stop at looking only at numbers and data; they need to get away from their monitors, visit worksites, and verify the essence of the situation directly through people." He continued, "Most important are fast and clear communication and agile decision-making unbound by formality," adding, "Reports must contain one's own thoughts and conclusions and be shared quickly at the right time and place."
On the manufacturing sector entering an industrial transition due to the rapid advancement of AI technologies, he said, "Even just looking at the auto market, it has become an era where the core competitiveness of products such as Autonomous Driving, software-based vehicle control, and personalized user experience (UX) is determined by AI capability," diagnosing that "to be realistic, leading global corporations have already secured an edge in this domain with investments in the hundreds of trillions of won, and compared with that, the capabilities we have secured are still insufficient."
Even so, he said, "We must lead new standards for the industry and products amid this difficult change." He emphasized, "Rather than thinking we are late, we must push forward in this AI-triggered industrial transition through close cooperation with various partners. We still possess world-class capabilities in the design and manufacturing of physical products, and data, which is essential for improving AI performance, can only come from such manufacturing sites and from users' product-use experiences."
Management also offered direct answers to concerns raised inside and outside Hyundai Motor Group about the software-defined vehicle (SDV) strategy. Vice Chair Jang said, "We are well aware of the many concerns regarding SDVs and Autonomous Driving, and we have pondered them deeply," adding, "What we have built in the challenging realm of SDVs will be a solid foundation for realizing the future our group envisions, and even now we are in the stage of raising completeness."
He added, "The transition to an SDV corporation is tied to our group's survival and future," and "This goal is non-negotiable and is an unwavering direction, I can say with certainty." He said the collaboration framework with 42dot, which is developing SDV technologies, will remain unchanged, and major development projects applying SDV technologies will proceed as scheduled.
Chung made clear that the group's future direction is to internalize AI-related technologies. He said, "As changes in the industry such as SDVs, AI, and future mobility are great, greater growth opportunities are opening for us," adding, "In this wave of change, corporations that do not internalize AI capabilities will find it difficult to secure survival."
He continued, asking rhetorically, "There is no upper limit to the productivity gains and knowledge-creation capabilities that AI will bring. Can we maintain competitiveness by simply bringing in this boundless technology from outside?" He emphasized, "Technologies that can be purchased externally are inevitably behind leading technologies."
Chung said it is not too late. He said, "As the center shifts to physical AI, the value of data from 'moving entities' such as automobiles and robots and from 'manufacturing processes' that Hyundai Motor Group possesses will become more scarce, and this is our powerful weapon that big tech companies cannot easily imitate," adding, "For Hyundai Motor Group, which has data, capital, and manufacturing capabilities, AI is a game we can certainly win."
Chung said, "We must go beyond simply tuning external models and absolutely internalize fundamental AI technologies themselves," adding, "The future depends on whether we see AI as a simple tool or make it a driving force for corporate evolution, and the only way to firmly establish ourselves as a top-tier global company in the future is to accept and internalize AI as the lifeblood of the organization, not as a technology borrowed from outside."
Main affiliates also presented this year's management goals. Hyundai Motor's Muñoz said, "We are minimizing tariff impacts through a flexible global production strategy and supply chain reconfiguration, and we are delivering results through a diverse powertrain lineup spanning hybrids, EVs, and internal combustion engines, and through region-specific, customer-tailored product strategies," saying the company will continue growth through major model launches, the introduction of Genesis hybrid models, and strengthening its presence in Europe and emerging markets.
Kia's Song said, "Kia has set a very challenging plan aimed at more than 6% growth this year. Through bold initiatives, we will use a crisis situation as momentum for sustained growth and actively tap new demand to achieve this year's growth target." As growth drivers, he cited volume new models such as the purpose-built vehicle (PBV) "PV5," "Telluride," and "Seltos." The company also plans to expand its global market foothold by establishing new sales subsidiaries in Malaysia and Indonesia, high-growth Southeast Asian markets.
Hyundai Mobis' Lee said, "As a core parts company of Hyundai Motor Group, we will reliably support the new architecture and play a key role in the mass production and rollout of SDVs," adding, "Specifically, we will standardize interface design, participate in the open-source ecosystem to help spread global SDV standards, and become a strategic partner in the SDV transition."