Hyundai Motor Company and Kia Corporation are set to begin a process of restructuring their research and development (R&D) operations.

The restructuring at the two units of Hyundai Motor Group (HMG) reflects the rapid changes that are taking place in the global vehicle market, especially the transition to smart electric vehicles (EVs), according to local reports.

Hyundai and Kia aim to consolidate their electronics and software R&D operations to strengthen their focus on changing demand in the global “mobility” market while moving away from traditional automotive R&D practices.

HMG said it plans to establish a new R&D operation focused on developing and integrating next-generation software and hardware architectures. According to a company spokesperson, the group plans to “restructure the R&D organization to secure future competitiveness, focusing on early preparation for innovations such as software-defined vehicles (SDVs) through synergies between software and hardware technologies”.

The group is expected to announce a more detailed restructuring plan in January aimed at improving its competitiveness, as competition in the global automotive market continues to escalate – particularly with the expansion of Chinese auto industry.

HMG’s autonomous driving technology unit, 42dot Inc, will play a pivotal role in the group’s future R&D operations. The company is expected to take over the electronics, infotainment and autonomous driving operations of both Hyundai and Kia, which have so far been “scattered around the group” according to an unnamed company official. These operations will be consolidated within the Hyundai Kia Namyang R&D Center in South Korea’s Gyeonggi province.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData