Issue Prism The story of Hyundai Motors receiving temporary OTA permission

Tesla’s competitiveness comes from IT (information technology) innovation that breaks the existing framework. Among them, the OTA (Over-the-Air Electronic Control Device Wireless Update) technology, which wirelessly updates braking, power, and acceleration performance, is considered the greatest strength. This is because it changes the performance of a car to the latest specifications regardless of time or place like a smartphone.

Tesla is evaluated as pioneering a new market through OTA technology that solves problems that arise after vehicle launch and complements performance. It also eliminates the hassle of customers having to go to a service center to update their vehicle.

OTA is also essential for future vehicles including autonomous vehicles. This is because autonomous driving performance and functions of the digital cockpit (driver’s seat, passenger seat, etc.) are updated in real time to maintain optimal performance. Mercedes-Benz teamed up with NVIDIA to develop OTA-related technology. Volvo Motors plans to apply an OTA function that continues to increase mileage to the electric vehicle’C40 Recharge’ that will be mass-produced this fall.

Because of its innovative OTA technology, Tesla once unintentionally conducted’illegal sales’ in Korea. This is because they provided OTA services that were not permitted by law in Korea. The current Automobile Management Act (Article 55) prohibits auto mechanics from performing inspection and maintenance work (excluding oil, filter, battery replacement, and navigation updates) at locations other than registered workplaces. The old laws created in the 1980s, 40 years ago, held the back of cutting-edge new technologies.

Hyundai Motor Company and Kia are no exception. Knowing that it was impossible to apply the OTA function to a new car, he knocked on the door of the regulatory sandbox and received a temporary permit in June of last year. Hyundai Motor Company plans to release a vehicle with OTA function within this year. Tesla also obtained temporary permission through the sandbox.

Currently, there are only three companies that can provide OTA service in Korea: Tesla, Hyundai Motor Company, and Kia. Since the law has not been amended (enforcement rules), individual companies must apply for a sandbox and obtain temporary permission. The Ministry of Land, Transport and Maritime Affairs said it would consider adding a car OTA service to the maintenance business exclusions during the license period (two years) while granting a temporary license to Hyundai Motor Company, but the enforcement regulations have not been revised yet.

Although Korea is the world’s fifth-largest automobile producer, the legal system and infrastructure for electric vehicles are poor. The number of charging stations is quite insufficient compared to the United States, China, and Japan. Rapid charging infrastructure is important to increase the supply of electric vehicles, and there are only 9,800 rapid chargers nationwide as of the end of last year. There are about 140,000 electric vehicles registered nationwide. Subsidy per unit purchase is also decreasing. The average subsidy for electric passenger cars has decreased from 8 million won last year to 7 million won this year.

The problem of manpower adjustment surrounding the electric vehicle production line is also a mountain to be overcome. Electric vehicles have a simpler assembly process than internal combustion locomotives, which significantly reduces the number of parts and production line workers. The number of parts required to assemble a vehicle is 30,000 internal combustion locomotives and 15,000 electric vehicles. The proportion of electric vehicle production is inevitably increasing, and the labor union’s backlash is hard. Hyundai Motor Company is set to sell Ioniq 5 to Europe this month, but it has not agreed with the labor union to reach a man-hour (number of workers assigned to the line) on the production line at Ulsan Plant 1.

Some are questioning whether electric vehicles will be able to supply power stably if they become commonplace. This is due to the post-nuclear power plant policy. Power supply through wind and solar power is inevitably limited.

Core technologies of the 4th industrial revolution, such as artificial intelligence (AI) and the Internet of Things (IoT), are focusing on’mobility’. In fact, the whole industry is in a situation where the electric vehicle war has jumped in. If it fails to meet the electric vehicle era, there is a high possibility that it will disrupt the strategy of hydrogen cars and autonomous vehicles, which are the next steps. It is necessary to remove the regulations that go back to the electric vehicle era and make investments in related industries and infrastructure.

[email protected]