Atlas the humanoid robot is demonstrating the transfer of components. (Image courtesy of Hyundai)
SEOUL, Jan. 26 (Korea Bizwire) — The production cost of Atlas, the humanoid robot developed by Boston Dynamics, a robotics affiliate of Hyundai Motor Group, is expected to fall sharply as manufacturing scales up, analysts said, underscoring the automaker’s ambitions to turn robotics into a long-term growth engine.
According to a report released Sunday by Samsung Securities, the initial manufacturing cost of Atlas is estimated at between $130,000 and $140,000 per unit. But that figure could drop to about $50,000 once production reaches 10,000 units, as economies of scale begin to take hold.
At volumes of 30,000 units, unit costs are projected to fall to roughly $35,000 — about a quarter of the initial level — and could decline further to around $30,000 if output reaches 50,000 units, the brokerage said.
Unlike automobiles, which require production volumes of more than 100,000 units per model to reach break-even, robots achieve scale efficiencies far earlier, analysts noted. Samsung Securities estimated that component-level economies of scale for robots emerge at around 10,000 units, with factory-level break-even reached at roughly 20,000 to 30,000 units.
The report also highlighted the potential labor-cost savings from deploying humanoid robots on production lines. Average annual labor costs in the U.S. manufacturing sector range from $70,000 to $80,000. By contrast, Atlas — capable of operating around the clock through automated battery replacement — would initially cost an estimated $9.40 per hour in labor-equivalent terms.
Hyundai’s Humanoid Robot Atlas (Image courtesy of Hyundai Motor)
If production exceeds 30,000 units, the effective hourly cost could fall to about $1.20, roughly one-sixth of average manufacturing wages in China, the report said.
Samsung Securities estimated that introducing Atlas into Hyundai and Kia factories could reduce labor costs, which account for roughly 7 to 8 percent of total vehicle manufacturing expenses. Depending on the pace of deployment, production costs could fall by about one percentage point annually.
Looking ahead, the brokerage said Boston Dynamics is expected to begin securing customers outside Hyundai Motor Group starting in 2027. While early production will likely be allocated primarily to Hyundai and Kia facilities — limiting immediate revenue recognition — robot sales to parts suppliers and external clients could accelerate later in the decade.
Samsung Securities projected that robot-related revenue could reach 1 trillion won (about $740 million) annually by 2029, as Atlas transitions from an internal productivity tool to a commercial product.
The outlook adds momentum to Hyundai Motor Group’s broader push into “physical AI,” following the high-profile unveiling of Atlas at CES 2026 earlier this month, and signals how robotics could reshape manufacturing economics across the global auto industry.
Kevin Lee (kevinlee@koreabizwire.com)
