Boston Dynamics' Atlas humanoid robots are displayed at Hyundai Motor headquarters in Seoul, March 26. Courtesy of Hyundai Motor

Hyundai Motor Group is accelerating a sweeping business reorganization by realigning its key affiliates’ portfolio around robotics and physical artificial intelligence (AI).

The shift began with Hyundai Wia’s reported plan to consider divesting its defense business to Hyundai Rotem, so the former can focus more on its robotics business.

The drive is seen as part of the group’s strategy to streamline overlapping or fragmented operations across its affiliates and speed up its expansion into the lucrative robotics area.

Hyundai Mobis is also undergoing a notable transformation. The auto parts arm of the group is phasing out traditional exterior component businesses such as bumpers and lamps, while boosting its push into robotics.

Starting in 2021, the company has included the manufacturing and sales of robots and robot components as its corporate business objectives. It already shared its plan to mass-produce actuators, a key component for advanced robots.

Hyundai Motor is standing at the center of the group-wide push for its transformation into physical AI.

The carmaker unveiled its latest humanoid robot — the Atlas — at this year’s CES tech fair in Las Vegas, underscoring its ambition to expand beyond the traditional automotive sector into next-generation intelligent robotics. The robot was designed by the group’s robotics arm, Boston Dynamics.

Hyundai Motor Group Executive Chair Chung Euisun attends the 2026 Semafor World Economy summit at a hotel in Washington, D.C., April 13. Courtesy of Hyundai Motor

The group-wide drive for robots and physical AI appears to serve as a key factor in building investor confidence.

Source: Korea Times News