Apple-Hyundai Motors’Apple Car’ Collaboration Lost… Blame the fight for leadership in relations?

Input 2021.02.14 15:56

‘I am alone’ Apple, Hyundai Motor, emerged as a collaboration partner
Collaboration with automakers, observation of the imminent commercialization of autonomous vehicles
Hyundai Motor Company “is not in consultation with Apple”

From the beginning of the year, the news of the collaboration between Hyundai Motor Group and Apple shook the world. The rumor that Big Tech Apple, who has been researching autonomous driving technology alone, is promoting collaboration with Hyundai Motor Groups such as Hyundai Motor and Kia, is interpreted as meaning that the high-profile Apple recognized the Hyundai Motor Group’s technology and recognition. The Hyundai Motor Group is evaluated as having the world’s’top 5’finished vehicle production facilities and market share of electric vehicles. It is a burden on Apple that global big techs such as Microsoft (MS), Amazon, and Google are joining hands with automakers to speed up. However, the observation that it will be difficult to narrow the disagreement for both sides who are familiar with the relationship of’Kaul’ is dominant.

◇Hyundai Motors that Apple, who had a high nose

Apple launched’Project Titan’ in 2014 and has been researching the development of autonomous vehicles alone. It is interpreted that the recent mention of collaboration with Hyundai Motors, Kia and other automakers is the imminent market entry. Reuters also reported that Apple will start producing electric vehicles in 2024. Some point out that Apple has experienced the limitations of its own development.

Unlike Apple, which is wrapped in a veil, the combination of global big tech and automakers is not what happened yesterday and today. Microsoft is working with General Motors (GM), Amazon is Toyota, and Google Waymo is Volvo. China’s Alibaba has also partnered with Shanghai Motors to develop autonomous driving. Sony, which is regarded as one of the fastest EV development speed among IT companies, unveiled the driving video of the electric vehicle Vision S prototype at the world’s largest information technology (IT) and home appliance exhibition’CES 2021′ held earlier this year.

The mention of Hyundai Motor as one of the alliances with Apple can be interpreted as meaning that Hyundai Motor’s brand and technology are recognized in the global market. The Hyundai Motor Group is equipped with the world’s top 5 finished vehicle production facilities, including Hyundai Motor Company and Kia Motors. As of September last year, the market share of electric vehicles was the fourth in the world. Hyundai and Kia’s global electric car market share is 7.2%. Excluding electric car maker Tesla (17.5%), Volkswagen Group (12.9%), Renault, Nissan, Mitsubishi (8.2%), and 3 among traditional automakers. Corresponds to above. The gap with the third place is only 1%p (point).

Hyundai Motor Group Chairman Eui-sun Eui-seon also revealed plans to release more than 23 electric vehicles by 2025. Specifically, Hyundai will launch a total of 12 electric vehicles by 2025 and sell 560,000 units per year. Kia plans to release 7 types of exclusive electric vehicles by 2026, one year ahead of the original plan, and build a total of 11 electric vehicle product lines to sell 1.6 million eco-friendly vehicles annually by 2030.

◇The era of autonomous driving and electric vehicles… Shake the’Kapul relationship’

Collaboration with Apple is a clear strength that can easily explore new markets through Apple’s brand recognition. It is possible to lead the popularization by rapidly realizing economies of scale in the electric vehicle and autonomous vehicle markets, which are still in the early stages.

Hyundai Motor Company has put effort into developing its own operating system in order not to be subordinate to big tech companies in the future car war. Hyundai Motor Group Chairman Eui-sun Eui-seon also emphasized that “we must become more ICT-like than information and communication technology (ICT) companies.”

However, Apple is famous for using its OS exclusively from the PC business to smartphones in the past. This is likely the same for future Apple cars. Apple has already developed’Apple CarPlay’ that allows you to move the iPhone display onto the vehicle screen, and most of the recently released vehicles support it. It has not only artificial intelligence (AI) to be installed in autonomous vehicles, but also an operating system (OS) for vehicles. For Hyundai Motors, the operating system that was in-house development could be in a position to drift.

Hyundai Motor Company is experiencing a completely different situation from the existing auto parts ecosystem as the paradigm shifts from internal combustion locomotives to electric cars. As the engine that used to play the role of the heart of the internal combustion locomotive is converted to a battery, it is evaluated that the lead in the production of finished vehicles is also shifting to the battery industry. For the automobile industry, which has been familiar with horizontal relations, the relation of’Kaul’ has changed.

Korean battery makers occupy more than 30% of the global electric vehicle battery market, but automakers are lined up to receive these products that have been recognized for their technological prowess. According to market research firm SNE Research LG Chem (051910)LG Energy Solutions, a battery subsidiary of Korea, ranked second with a market share of 23.5%. Same period Samsung SDI (006400)Wow SK innovation (096770)Market share of 5.8% and 5.4%, ranking 5th and 6th. The total share of the three domestic battery companies is 34.7%.

On the other hand, if you look at what Hyundai Motor Company and Kia have revealed through disclosure, there is also a prospect that there is no small possibility of renegotiation. On January 8th, Hyundai Motor Company said, “We are receiving requests for cooperation in joint development of autonomous electric vehicles from a number of companies, but this has not been decided.” Subsequently, in the announcement on February 8th, along with the previously announced content, it was said that “there is no discussion on the development of autonomous vehicles with Apple.” As the word’electric vehicle’ is omitted, interpretation is raised as to whether discussions are continuing in some areas.