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Hyundai Chair Chung Unveils 2026 Vision Focused on Physical AI and Global Ecosystems

Executive Chair Euisun Chung shares a strategic roadmap prioritizing "Physical AI" and global collaboration to lead new industry standards.

Executive Chair Euisun Chung shares a strategic roadmap prioritizing "Physical AI" and global collaboration to lead new industry standards.

Executive Chair Euisun Chung shares a strategic roadmap prioritizing "Physical AI" and global collaboration to lead new industry standards.

NewDecoded

Published Jan 5, 2026

Jan 5, 2026

4 min read

Hyundai Motor Group Executive Chair Euisun Chung presented the Group's 2026 strategic vision during a global employee address in Seoul on January 5, 2026. The roadmap emphasizes a transition toward an AI-driven ecosystem and continuous customer-focused evolution to navigate rapidly changing market dynamics. Chung identified five key priorities including agile decision-making and bold collaboration with external partners to set new industry standards. A primary focus of the new strategy is the internalization of "Physical AI," which merges artificial intelligence with the Group's manufacturing expertise. By leveraging data from vehicles, robots, and production sites, Hyundai intends to build a unique competitive advantage that software-only companies cannot match. This includes advancing robotics through Boston Dynamics to deploy humanoid robots like Atlas for complex tasks. More details can be found at the Hyundai Newsroom.

The Group is also accelerating its shift toward Software-Defined Vehicles to perfect the user experience through digital transformation. Vice Chair Jaehoon Chang confirmed that the collaboration with autonomous driving subsidiary 42dot remains a foundation for these future models. The Group aims to deploy this technology across various vehicle platforms as it establishes mass-production verification systems.

Hydrogen leadership remains a central component of the 2026 vision, extending beyond mobility to the entire energy value chain. Hyundai is positioning itself as a leader in hydrogen production, storage, and industrial applications to complement renewable energy sources. This builds on previous partnerships, such as the 2025 agreement with Air Liquide, to foster a global hydrogen economy.

To address geopolitical risks and low-growth trends, the Group is restructuring supply chains and focusing on localization. Hyundai Motor CEO José Muñoz highlighted these efforts as essential to minimizing the impact of potential trade tariffs in key global markets. Meanwhile, Kia has set an ambitious growth target of over six percent for the year, supported by its expanding Purpose Built Vehicle ecosystem.

Executive Chair Chung concluded by calling for a cultural shift toward faster communication and less formality in decision-making. He encouraged leaders to engage directly with field operations to understand the essence of market challenges firsthand. The Group aims to honor the spirit of its founders by creating new paths where none currently exist.


Decoded Take

Decoded Take

Decoded Take

Hyundai's 2026 vision signals a strategic pivot from a traditional vehicle manufacturer to a comprehensive Mobility and AI Ecosystem provider. By defining its core competency as Physical AI, the company is building a defensive moat based on its massive hardware footprint, which generates real-world data that pure software competitors lack. This shift addresses the increasing threat from tech giants entering the automotive space and the pressure of protectionist trade policies. The focus on robotics and hydrogen further diversifies their business model, ensuring long-term resilience as the global industry moves away from internal combustion engines.

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