In his New Year remarks, Chung Eui-sun, the executive chairman of Hyundai Motor, expressed concerns about the challenges facing the global auto industry in 2026. These concerns stem from escalating global trade tensions and fierce competition within the automotive sector, which he predicts will significantly affect profitability. Chung indicated that geopolitical conflicts could disrupt operations, leading to potential business suspensions in certain regions. Hyundai, South Korea's largest automaker, is currently feeling the adverse effects of tariffs imposed by the United States, which have incurred considerable financial burdens on the company, amounting to approximately 1.8 trillion won during the third quarter of 2025. Adding to Hyundai's difficulties, an immigration raid on a facility shared with LG Energy Solution in the U.S. last September is likely to delay its construction timelines by two to three months. Chung's remarks included a call for Hyundai to enhance its capabilities in artificial intelligence (AI) to remain competitive amid the rapidly evolving tech landscape. He noted that major global companies have already established significant footholds in AI through substantial investments. To bridge this gap, Chung emphasized the necessity of collaborating with various partners to boost Hyundai's AI capabilities and maintain relevance in the industry. In 2019, Hyundai launched its Robotics Lab to focus on AI and robotics, and in 2021, it acquired Boston Dynamics. The company plans to allocate 125 trillion won towards AI, robotics, and other emerging technologies over the coming five years, recognizing the increasing importance of innovative solutions in automotive and manufacturing processes. Chung concluded that the unique value of Hyundai’s physical AI, particularly concerning vehicles and robots, offers a competitive edge that telecommunications companies may find challenging to replicate. Alongside these developments, Motional, an autonomous driving joint venture with Aptiv, aims to launch fully driverless Ioniq 5 robotaxis in Las Vegas by the end of 2026, showcasing Hyundai's commitment to advancing mobility solutions in an ever-changing landscape.