Hyundai expands beyond cars as robotics becomes a new growth engine

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What happens when an automaker starts building a business beyond cars? For Hyundai Motor Co., robotics is becoming a key part of that shift, with the company moving from using robots in its factories to developing, manufacturing and deploying them at scale.

Hyundai is laying the groundwork to become a physical AI and technology company following its takeover of robotics maker Boston Dynamics. The move comes as the company looks to diversify its revenue, with its automotive business currently accounting for nearly 80 per cent of revenue.

The next step is already taking shape at Hyundai Motor Group Metaplant America in Savannah, Georgia, where the company manufactures all-electric vehicles. Hyundai opened its Robot Metaplant Application Center there in June. The centre simulates real factory conditions, trains manufacturing robots, collects data and carries out testing and verification before commercial production begins.

Jose Antonio Muñoz, Hyundai’s president, CEO and internal director, said at the company’s investor day that Hyundai plans to expand the centre by more than tenfold by the end of 2026. The company is also investing in a robotics manufacturing facility, although it has not specified its location or investment size.

“We are transitioning to a physical AI and technology company,” he said. “We will be building, deploying, even financing robotics at scale.”

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From factory robots to commercial production

Hyundai’s robotics ambitions did not begin with the latest acquisition. The automaker bought an 80 per cent controlling stake in Boston Dynamics from Softbank in 2021 for USD 1.1 billion. Since then, the two companies have worked together across Hyundai’s factories to scale production and integrate Boston Dynamics’ Atlas humanoid and Spot quadruped robots for industrial inspection.

Boston Dynamics also produces Stretch mobile robots for case handling and other warehouse-related tasks.

In July, Hyundai agreed to purchase Softbank’s remaining shares in Boston Dynamics for roughly USD 325 million, according to a report first published by South Korean newspaper Maeil Business. The transaction made Boston Dynamics a wholly owned subsidiary of Hyundai.

Hyundai expects to begin manufacturing Boston Dynamics humanoids and other robots in the US in 2028, with annual capacity planned at 30,000 units.

Atlas is expected to have a direct role at Metaplant America from 2028, initially handling parts sequencing tasks before expanding into component assembly by 2030.

Hyundai is also looking beyond deploying robots in its own operations. The company is investing in a US robotics manufacturing facility, with Muñoz saying the first 25,000 units already have guaranteed customer orders.

The strategy mirrors Hyundai’s broader push to localise production. Earlier this year, the company committed to building more than 80 per cent of the vehicles it sells domestically in the US by 2030. According to Muñoz, the same approach will apply to robotics.

The automotive business will provide the financial base for this expansion, allowing Hyundai to build out its autonomous vehicle and robotics segments while it works towards a broader technology-focused business.

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