An engineer inspecting Ionic 5 (Image courtesy of Hyundai Motor Co.)
SEOUL, Oct. 15 (Korea Bizwire) – As the race to dominate the future of the automotive industry intensifies, with a focus on electrification and software-defined vehicles (SDVs), a wave of strategic partnerships is reshaping the global automobile market.
Industry analysts suggest these alliances are largely driven by a shared concern: the need to respond to China’s rapid advancement in eco-friendly and autonomous driving technologies.
On October 4, Hyundai Motor and Waymo, the U.S. autonomous driving firm, announced a strategic partnership that exemplifies this trend.
The collaboration aims to integrate Waymo’s sixth-generation fully autonomous driving technology, Waymo Driver, into Hyundai’s Ioniq 5 electric vehicles for use in Waymo’s autonomous taxi service, Waymo One.
This partnership is particularly noteworthy as it brings together a traditional automaker that has been intensively developing SDV capabilities with a major U.S. tech company.
The alliance gains additional significance considering that Waymo chose to replace Zeekr electric vehicles from the Chinese automaker Geely with Hyundai’s Ioniq 5 for its sixth-generation autonomous system, potentially positioning this collaboration as a counterpoint to China’s aggressive strides in autonomous driving.
China has been rapidly building its autonomous driving capabilities, leveraging its domestic electric vehicle and IT companies. In mid-2024, the country approved road testing of Level 3 and 4 autonomous driving for nine Chinese companies, including BYD.
As a result, Level 4 autonomous taxis are now a common sight in Wuhan, China’s first autonomous driving pilot city.
The Hyundai-Waymo partnership also aligns with recent U.S. government regulations prohibiting the use of Chinese software and components in connected cars’ autonomous driving and communication systems, adding another layer of geopolitical significance to the collaboration.
This trend of strategic alliances extends beyond automaker-tech partnerships to include collaborations between traditional car manufacturers.
Last month, Hyundai and General Motors (GM) signed a memorandum of understanding for comprehensive cooperation, encompassing joint development and production of passenger and commercial vehicles, as well as collaboration on eco-friendly energy development, including hydrogen.
The partnership between these global giants, ranked third and sixth in global sales respectively, was initially seen as unprecedented in the industry.
However, it is increasingly viewed as a strategic alliance for survival in an era of transition to electrification, where automakers must simultaneously invest in internal combustion, hybrid, and electric vehicles.
Similarly, Toyota Motor Corporation and BMW Group announced in September their plans to cooperate in future mobility areas, including fuel cell vehicles (FCVs).
Under this agreement, Toyota will supply core components such as hydrogen tanks, while BMW plans to mass-produce FCVs within a few years.
An industry insider commented, “The global automotive market is currently in a state of heightened tension, where failing to respond promptly could lead to rapid obsolescence.
These alliances are likely to accelerate technological advancements and speed up the transition to electrification.”
Kevin Lee (kevinlee@koreabizwire.com)
