Hyundai Allegedly in Autonomous Driving Tech Talks with XPeng

If this Chinese partnership materializes, Hyundai will build a global autonomous driving tech network centered on the U.S. and Chinese markets.

According to a report, Hyundai Motor is in collaboration talks with Chinese autonomous driving technology companies, including XPeng Motors. This marks another significant step for Hyundai in seeking partnerships with Chinese autonomous driving firms, following previous engagements with Baidu and Momenta.

Hyundai Motor plans to shift from its previous in-house development strategy to partnering with globally leading companies, aiming to achieve a “quantum leap” in autonomous driving technology.

It is reported that XPeng has already established a legal entity in South Korea and has begun expanding its electric vehicle and autonomous driving technology business there.

Previously, Hyundai adhered to an in-house development route. In 2022, it acquired the autonomous driving startup 42dot and established an AVP division to promote technological internalization.

However, facing the rapidly evolving industry landscape, Hyundai is now turning to a global collaboration model. Currently, Hyundai collaborates with Google’s Waymo in the United States and develops technology through its subsidiary, Motional.

If cooperation with Chinese companies is successfully reached, it will establish a global autonomous driving technology network centered on the two major automotive markets of the United States and China.

Hyundai’s choice of Chinese partners is no coincidence.

The report points out that, based on extensive driving data and practical experience, the technical level of Chinese autonomous driving companies has been evaluated to reach over 90% of that of Waymo, the global leader.

These talks with Hyundai are not XPeng’s first collaboration with an international automaker. In 2024, XPeng Motors signed a second-phase strategic cooperation agreement with the Volkswagen Group to develop the EEA for Volkswagen’s pure-electric models in China, marking a milestone where Chinese automakers have begun exporting core technologies to the world.

Furthermore, at the 2025 AIDAY held earlier this month, XPeng announced that Volkswagen would become the inaugural strategic partner for its second-generation VLA and Turing AI chips.

This potential collaboration holds significant meaning for both parties. For Hyundai, it could quickly address shortcomings in intelligent technology; for XPeng, partnering with a traditional automotive giant would further validate its technical capabilities.