Hyundai Motor Group Executive Chair Chung Euisun has warned that 2026 will be a very difficult year for the global auto industry. In his New Year message, he said rising trade tensions, strong competition, and global conflicts could hurt car companies around the world.
Chung said many risks that companies feared in the past are now becoming real. He explained that profits may fall as costs rise and markets remain unstable. Some companies may even have to stop operations in certain regions because of political or economic problems.
Hyundai has already felt the pressure. The company has been hit hard by tariffs imposed by US President Donald Trump. A 15% tax on cars made in South Korea cost Hyundai about 1.8 trillion won, or nearly $1.2 billion, in just one quarter. On top of this, an immigration raid at a Hyundai–LG Energy Solution factory in the US is expected to delay construction work by two to three months.
Chung also admitted that Hyundai is behind its rivals in artificial intelligence. He said the company needs to work with more partners to improve its AI skills. According to him, global tech leaders have invested huge amounts in AI, while Hyundai’s current abilities are still limited.
However, Chung believes Hyundai has a unique strength. As the world moves toward “physical AI,” data from cars, robots, and factories will become very valuable. He said this is something big tech firms cannot easily copy.
Hyundai has already taken steps in this direction. It set up a Robotics Lab in 2019 and later bought Boston Dynamics. The group plans to invest 125 trillion won in South Korea over the next five years in AI, robotics, and new technologies.
Meanwhile, Hyundai’s self-driving unit Motional plans to launch fully driverless Ioniq 5 robotaxis in Las Vegas by the end of this year.
