Accelerating Collaboration: Toyota and Hyundai’s Joint Venture in Future Mobility

Toyota Motor Corporation and Hyundai Motor Group are set to deepen their collaboration in future mobility technologies, with a key meeting scheduled later this month between their respective leaders. Toyota Chairman Akio Toyoda will visit South Korea to join Hyundai Motor Chairman Chung Eui-sun at a joint motorsport event, the “Hyundai N x TOYOTA GAZOO Racing Festival.” 

It is the first public meeting between the two industry giants. The event will feature high-performance models from both companies, offering enthusiasts an immersive experience of Hyundai N and Toyota GR vehicles in action.

The upcoming “Hyundai N x TOYOTA GAZOO Racing Festival” will feature some of the top talent from both Hyundai and Toyota’s motorsport divisions. Famous racers from Hyundai’s World Rally Championship (WRC) program, such as Thierry Neuville, Dani Sordo, and Andreas Mikkelsen, will showcase high-performance models, including the i20 N Rally 1 Hybrid and i20 N Rally 2. 

Toyota’s lineup will be equally impressive, with drivers like Takamoto Katsuta and Jari-Matti Latvala behind the wheel of rally cars such as the GR YARIS Rally 1 Hybrid and GR86.

Akio Toyoda and Chung Eui-sun will visit each other’s booths during the festival and share their visions for the future of mobility. The event, featuring demonstrations of racing technology, aims to deepen ties between Toyota and Hyundai as they explore potential partnerships in hydrogen and electric vehicle innovations.

Toyota’s last visit to Seoul was in 2012 when the company was facing challenges related to the aftermath of the 2011 Tohoku earthquake and a large-scale recall in the U.S. Since then, both Toyota and Hyundai have evolved rapidly, particularly in the electric vehicle and hydrogen fuel cell sectors.

Industry experts are closely watching this meeting, especially given Hyundai’s recent partnership with General Motors to jointly develop hydrogen fuel cells and electric vehicle solutions. 

Toyota, on the other hand, has been strengthening its hydrogen vehicle development through collaborations with companies like BMW. As these automakers continue to seek leadership in future mobility technologies, this motorsport event could pave the way for a broader partnership between the two automotive giants.

According to SNE Research, global sales of hydrogen vehicles dropped 34% in the first half of this year, with only 5,621 units sold compared to 8,524 a year earlier. Hyundai led the market with 1,836 units of its NEXO hydrogen fuel cell electric vehicle (FCEV), followed by Toyota’s 1,284 units of the Mirai hydrogen sedan. Sources suggest that Hyundai Motor Group Chairman Euisun Chung and Toyota Chairman Akio Toyoda may explore collaborations in hydrogen vehicles, electric vehicles (EVs), and hybrid technologies.

Chung is reportedly interested in learning from Toyota’s success in hybrid cars, while Toyoda is intrigued by Hyundai’s swift rise in the EV market. A potential partnership between the two leading automakers could significantly reshape the global automotive landscape. Toyota, which achieved a record operating profit of 5.35 trillion yen ($36.2 billion) in 2023, has transitioned slowly to electric vehicles. Meanwhile, Hyundai, now the world’s third-largest automaker by volume, has gained recognition for its leadership in the EV sector, particularly in the U.S.