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Newsletter N°85 - January 2026
🚗 Mobility: Hyundai Rotem Reshuffles for the Physical AI Era
Hyundai Rotem is pivoting to secure leadership in new growth businesses centered on robotics and hydrogen, as global industrial competition rapidly shifts toward physical AI, AI that goes beyond digital outputs to perceive, judge, and act in real-world spaces via hardware such as sensors and robots. The company said it has carried out an organizational overhaul to strengthen new businesses and prepare for this transition.
In his New Year’s address, CEO Lee Yong-bae highlighted intensifying competition in future industries including hydrogen, unmanned systems, AI, and aerospace, stressing the importance of technological sovereignty and speed in translating it into commercial applications. Hyundai Rotem plans to expand core technologies tied to autonomous driving and physical AI across its business models.
By business segment, the defense operation will develop manned–unmanned integrated ground weapon systems and nurture an aerospace portfolio. The company plans to equip next-generation tanks, armored vehicles, and its multipurpose unmanned vehicle HR-Sherpa with AI-based autonomous driving and swarm control capabilities, while expanding R&D of multi-legged walking robots. In aerospace, Hyundai Rotem has begun developing a 35-ton-class methane engine aimed at an era of privately led space transportation.
Hyundai Rotem’s multipurpose unmanned vehicle the HR-Sherpa
The rail business will advance an AI-based condition-based maintenance system, while the plant segment will expand R&D and commercialization of smart logistics solutions, including automated guided vehicles for ports, strengthening capabilities linked to robots and hydrogen.
Hyundai Rotem official inspecting a railway vehicle using a condition-based maintenance system
To execute faster, Hyundai Rotem established a Robot & Hydrogen Business Office, created dedicated robot sales and research teams, reorganized growth/hydrogen teams into robot & hydrogen planning and project management units, renamed its manned–unmanned systems center and robotics team into the AX (AI transformation) Promotion Center and AI Robot Team, and added an aerospace systems team under the Aerospace Development Center. The reorganization also shifts the company from a function-based structure to a business-oriented system, reducing units from 37 divisions / 15 centers / 186 teams to 35 divisions / 14 centers / 176 teams, effective this month, to remove overlap and improve efficiency.