Hyundai has announced around $1 billion in investment support for Motional, its autonomous driving joint venture with Aptiv PLC. This investment will provide Hyundai with a majority stake in Motional and ensure the startup’s continued operation amid delays in its robotaxi service rollout. As part of the deal, Hyundai will directly invest $475 million into Motional and purchase an 11% equity interest in the startup from Aptiv for $448 million.
The investment, totaling 1.29 trillion won ($946 million), will help Motional develop its technology and secure Hyundai’s control over the startup. Hyundai Motor Group, the world’s third-largest automaker, will increase its stake in Motional through a capital increase and acquire shares from Aptiv, the joint venture’s current partner.
Aptiv has announced its intention to reduce its ownership interest in Motional from 50% to around 15%, while Hyundai plans to hold the remaining 85% control. With this, Aptiv has decided to reallocate capital away from Motional due to the high costs associated with commercializing autonomous taxi services and the prolonged path to profitability.
Hyundai, confirming Aptiv’s figures, will increase its stake in Motional to 66.8%, securing stable management rights to actively drive autonomous driving technology development.
The transactions, including Hyundai’s acquisition of an additional 11% stake from Aptiv, are planned for completion by the third quarter of this year.
Motional’s origins trace back to nuTonomy, an autonomous vehicle startup founded in Boston in 2013. Following Delphi’s acquisition of $450 million, nuTonomy was integrated into Delphi’s operations, eventually becoming part of Aptiv.
In 2019, the Hyundai-Aptiv joint venture rebranded the entity as Motional, a shift in focus toward advancing autonomous vehicle technology. However, Aptiv’s recent decision to reduce its ownership stake in Motional suggests a strategic shift to manage risks and optimize financial performance, raising uncertainties about the self-driving startup’s future trajectory.
Despite the challenges, Motional continues to operate an autonomous vehicle taxi service in Las Vegas, offering rides through popular ride-hailing platforms like Uber, Lyft, and Via. While human operators currently supervise these vehicles, Motional’s long-term goal remains centered on achieving fully autonomous driving capabilities.
Motional and Hyundai’s collaboration took place in November 2023 when they announced plans to co-develop production-ready versions of the all-electric Ioniq 5 robotaxi at Hyundai’s new innovation center in Singapore.
This initiative, undertaken at the Hyundai Motor Group Innovation Center Singapore (HMGICS), aims to accelerate the development of advanced autonomous driving technology for commercial applications.
During CES 2024, Motional also revealed its partnership with Kia to develop a next-generation vehicle scheduled for commercial operations later this decade.
Hyundai Motor Group has invested in the self-driving startup to support Motional’s financial stability and accelerate its tech development. Hyundai Motor Co., the group’s largest automaker, will inject 345 billion won, with smaller affiliates Kia Corp. and Hyundai Mobis Co. committing 186 billion won and 132 billion won, respectively, towards Motional’s rights offering.
Additionally, Hyundai Motor Co. plans to invest 325 billion won to acquire Aptiv’s stake in Motional, with Kia and Hyundai Mobis contributing 175 billion won and 125 billion won, respectively.
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