Following the news that Hyundai Motor and Aptiv have formed a $4bn joint venture (JV) to develop a market-ready robo-taxi platform by 2022;

David Leggett, Automotive Editor at GlobalData, a leading data and analytics company, offers his view:

“Developing sophisticated autonomous vehicles (AVs) is no easy ride but, according to GlobalData forecasts, Society of Automotive Engineering (SAE) Level three and four automated light vehicles will see a big rise in volumes over the next decade, accounting for over three million units of annual production by 2028. Companies need to be developing and testing the relevant technologies now to be competitive and participate in the market for these vehicles as it develops.

“Hyundai and Aptiv’s JV illustrates the clear need for companies to partner in developing autonomous drive technologies. The depth and breadth of capability requirements for this technology are outside of the traditional automotive structure. In particular, non-traditional software companies are now working with automotive companies. Automotive supplier companies accustomed to ‘automotive grade’ standards for original equipment development are increasingly working with software companies who straddle multiple industries and have different methods and product development cultures (typified by OTA software updates).

“Aptiv’s capability to supply key technologies makes it a very strong partner for a vehicle manufacturer – in this case Hyundai. Aptiv will contribute its autonomous driving technology expertise (it has a long and extensive pedigree in closely related advanced driver assistance systems) to the JV. Similarly, Hyundai provides whole vehicle engineering capabilities.

“Automakers are having to think outside of their traditional mindsets in developing increasingly sophisticated technologies where capabilities lie outside of the traditional automotive ecosystem. Increasingly, they cannot go it alone.”