Hyundai in talks with Waymo for robotaxi production

Seoul, South Korea—Hyundai Motor Company (005380. KS) is discussing contract manufacturing autonomous taxis with Alphabet Inc's (NASDAQ: GOOG) Waymo, South Korean media outlet Electronics Times reported on Wednesday, citing industry sources.

The potential partnership could mark Hyundai's entry into the automotive foundry business as it seeks to diversify its operations amid the evolving automotive landscape.

According to the report, senior executives from both companies have met at least three times, including at Waymo's U.S. headquarters, to discuss the production of robotaxis.

Waymo, which operates around 1,000 autonomous vehicles in the United States, is reportedly looking for alternatives to its Chinese-made Geely Zeekr electric vehicles due to rising tariffs.

The report said the discussions involve replacing the Zeekr vehicles with Hyundai's IONIQ 5 model, equipped with Waymo's sixth-generation autonomous driving system.

Industry experts in the Electronics Times report suggest this move could help reduce manufacturing costs while enhancing the vehicles' autonomous capabilities.

The report added that Hyundai's Singapore Global Innovation Center, which already produces robotaxis for the Motional joint venture, is being considered a potential production site for the Waymo vehicles.

According to the report, the Hyundai spokesperson acknowledged the company's efforts in expanding its business but stated there were no confirmed details regarding new ventures to disclose.