How humanoid robots are rewriting Hyundai–Toyota rivalry

With the humanoid robotics boom accelerating, Hyundai Motor Group and Toyota — longtime Asian rivals in the global auto industry — are emerging as striking contrasts in how they view robots as the next engine of growth.

For years, Hyundai traded at a valuation discount to Toyota, widely seen as the more technologically advanced and globally dominant automaker. Now, that perception is shifting. As robotics moves from concept to commercialization, investors are reassessing Hyundai’s growth trajectory — and its stock multiple.

What was once a rivalry defined by an electrification strategy is increasingly becoming a race to secure robotics capabilities that could underpin the next era of manufacturing competitiveness.

Hyundai’s bold pivot crystallized at CES 2026 in January, where it showcased Atlas, the humanoid robot developed by its US subsidiary Boston Dynamics.

At the event, Hyundai laid out an aggressive road map: a US robot manufacturing plant with annual capacity of 30,000 units by 2028, with pilot deployments beginning at its Hyundai Motor Group Metaplant America in Georgia. The plan comes just four years after Hyundai acquired a controlling stake in Boston Dynamics in 2021 — a deal once viewed as speculative.

Toyota, by contrast, has taken a more measured approach. The Japanese automaker unveiled its T-HR3 humanoid robot in 2017, positioning itself early in advanced robotics. But since showcasing applications in elderly care, disaster response and teleoperation in 2019, Toyota has offered few major updates on in-house humanoid commercialization.

Instead, it has leaned on partnerships — including collaboration with Hyundai’s Boston Dynamics unit to enhance Atlas’ AI capabilities using the Toyota Research Institute’s Large Behavior Model technology.

In February, Toyota deployed seven “Digit” humanoid robots from US-based Agility Robotics at its Ontario plant, integrating them into the production line for the Toyota RAV4. But the move signaled experimentation rather than a large-scale rollout.

Markets have responded more forcefully to Hyundai’s strategy.

Historically, Hyundai traded at a persistent valuation discount to Toyota, reflecting narrower margins, governance concerns and a perception of weaker technological edge. That gap is now narrowing — and in some metrics, reversing.

After CES 2026, Hyundai’s price-to-earnings ratio surpassed Toyota’s, crossing the 10 threshold. According to Yonhap Infomax, Hyundai’s PER climbed above 12 on Feb. 2 — its highest level since the 2021 Apple Car speculation surge.

Even after Toyota’s robot deployment announcement, Hyundai’s trailing 12-month PER stood at 10.8, compared with Toyota’s 9.4.

In other words, investors are now willing to pay more for Hyundai’s earnings than Toyota’s — a notable shift for a company long considered structurally undervalued relative to its Japanese rival.

Hyundai’s valuation multiple has risen roughly 42 percent year-on-year, reflecting growing confidence in its robotics pivot. Toyota, by contrast, has seen only modest multiple expansion over the same period.

“Hyundai is increasingly being valued more like Tesla or BYD — technology-driven mobility players — rather than a traditional manufacturer like Toyota,” said a researcher at a state-run Korean institute.

He pointed to Hyundai’s acquisition of Boston Dynamics — which had passed from Google to SoftBank before landing at Hyundai — as a turning point.

“Japan once symbolized humanoid leadership with Honda’s Asimo. Now the center of gravity is shifting toward Korea, the US and China.”

Industry experts say Toyota’s early humanoid leadership has not translated into factory-floor acceleration.

In September 2024, Toyota Research Institute introduced Punyo, a soft robot equipped with air-filled chambers for safer interaction in household environments. A year later, Toyota opened Woven City near Mount Fuji as a living laboratory to test service robotics in real-world settings.

Kim Pil-su, an automotive engineering professor at Daelim University, said Toyota’s focus on human-safe, small-scale service robots reflects a fundamentally different philosophy.

“Toyota’s humanoids are likely to prioritize safety and domestic applications rather than industrial scale,” Kim said. “Some may argue this approach secures higher ground — mastering safe interaction before tackling complex factory automation.”

But as Hyundai, Tesla and Chinese automakers push aggressively into industrial robotics, that caution could alter the competitive map.

“Toyota’s conservative management style was already evident in electrification, where it emphasized hybrids while others raced into full EVs,” Kim said. “In robotics, Hyundai is taking the bolder bet.”