Hyundai’s Answer to the EV Slowdown: Building Tens of Thousands of Robotaxis
Hyundai will build tens of thousands of Ioniq 5 robotaxes for Waymo at its plant in Georgia, chief executive Jose Munoz revealed at an event in San Jose, per InsideEVs. He described the robotaxi manufacturing business as already profitable and evolving into "a business unit on itself".
This strategy emerges from the electric vehicle (EV) market slowdown. While rivals have taken significant write-downs on EV assets due to the US tax credit and fuel economy rules changes, Hyundai adjusted its Savannah facility to focus on building more hybrids and fewer electric cars.
Robotaxis (164news.com's guide to robotaxis) have become the new frontier for electric volume. Waymo operates approximately 4,000 vehicles across 14 US cities, with the first Ioniq 5s intended for commercial use arriving this quarter. These vehicles are equipped with redundant steering and braking systems and incorporate Waymo's sixth-generation system.
Hyundai's Georgia-built Ioniq 5 offers a competitive advantage over Waymo’s cheaper, China-produced Ojai model. The latter has its bodies built by Zeekr in Ningbo, shipped to Arizona as stripped shells to mitigate tariffs. A Georgia-built Ioniq 5 avoids this need. Morgan Stanley estimates the finished Ojai at approximately $125,000.
However, Europe presents a challenge. The sole approval route for fully automated cars across the EU is capped at 1,500 units annually per model. This limits Hyundai's ability to achieve "tens of thousands" in Europe under current regulations. National approvals exist but are confined to individual countries and their respective borders.
Waymo plans to expand to Munich under Germany’s 2021 framework for level four services, aiming for commercial rides by late 2027. This period will involve mapping the city and operating it manually before transitioning to full automation. Germany holds the distinction of being the first country to pass a level four commercialization framework globally.
Munoz expressed a significant opportunity to scale up beyond Waymo, emphasizing American ambitions while noting European limitations under current regulations.