In a significant move, Waymo has announced a partnership with Hyundai to bring the IONIQ 5 electric vehicle (EV) into its robotaxi network. This deal marks another step in the company’s expansion plans as it scales up its business.
Partnership Details
According to Waymo, it expects to start on-road testing of the IONIQ 5 equipped with its autonomous vehicle technology by late 2025. The vehicle is expected to become available for riders "in the years to follow." Hyundai will build the IONIQ 5s at a factory in Georgia, while Waymo will integrate its autonomous technology into the vehicles at a separate location.
Financial Details
Chris Bonelli, a spokesperson for Waymo, declined to disclose the financial terms of the deal. However, he did mention that Waymo expects to produce "a significant volume" of autonomous IONIQ 5s with Hyundai. When asked about the number of vehicles involved, Bonelli stated that the IONIQ 5 is not directly replacing any of the vehicles currently used or planned for use by Waymo.
Impact on Waymo’s Fleet
The addition of the IONIQ 5 to Waymo’s fleet will help the company address the issue of vehicle churn in its growing robotaxi network. Initially, Waymo began with Chrysler Pacifica hybrid vans but has since phased them out. Currently, the company relies on aging Jaguar I-Pace SUVs. Waymo is also testing vans designed for autonomous use from China’s Zeekr in San Francisco, although this vehicle may face tariff-related challenges.
Expanding Robotaxi Network
Waymo has been expanding its robotaxi network by partnering with ride-hailing companies like Uber. Just last month, it announced that Uber would make Waymo AVs available on its own ride-hailing network in Austin and Atlanta next year.
Pivotal Moment for Hyundai
This partnership comes at a critical time for Hyundai, which has faced challenges in its autonomous vehicle joint venture, Motional, with automotive supplier Aptiv. Earlier this year, Aptiv backed out of the venture, leaving Hyundai to step in and fill the financial gap. Motional has since undergone significant restructuring, resulting in hundreds of layoffs, and CEO Karl Iagnemme
