Toyota and Hyundai Chairmen to Meet: Possible Partnership?

You know times are tough in the automotive industry when more and more car companies are eager to collaborate. Hyundai just signed a Memorandum of Understanding with General Motors to potentially develop and build cars together. It seems that the Korean brand is still looking for partners. An interesting new report claims a Toyota-Hyundai partnership could be brewing, according to undisclosed sources cited by The Korea Economic Daily.

The meeting is scheduled to take place at the end of October when Toyota chairman Akio Toyoda will fly to Seoul. It is believed the former President and CEO of the world's largest automaker will be visiting South Korea following an invitation from Euisun Chung, Hyundai's chairman. The report quotes a diplomatic source saying: "Chairman Chung expressed his desire to meet with Chairman Toyoda earlier this year, and Toyoda accepted it.”

Akio Toyoda will allegedly arrive in Seoul on October 24, but the meeting is programmed for the following day. Toyota's chairman is likely to fly home on October 26. Meanwhile, the company's Korean division is said to be putting the finishing touches on the chairman's schedule for the three-day trip.

What will they be talking about? The Korea Economic Daily has heard through the grapevine that hydrogen will be the main theme. Hyundai and Toyota could work together to speed up the development of fuel cell vehicles and work on setting up a "hydrogen ecosystem." It remains to be seen whether the latter refers to a refueling infrastructure, which is much needed if car companies really want hydrogen to take off. A little over 1,000 stations were operational worldwide at the end of 2023, according to a study conducted by Interact Analysis.

In its hydrogen efforts, Toyota has already teamed up with a different car company. It's been working with BMW for several years. The German luxury brand's fleet of iX5 hydrogen SUVs uses fuel cells supplied by Toyota. Come 2028, BMW will launch its first-ever series production hydrogen model, following a deeper tie-up with Toyota.

The two are jointly developing next-gen fuel cell tech and are looking for partners to improve the hydrogen refueling infrastructure. Toyota has been selling the Mirai since late 2014, albeit demand has been weak. Chief technology officer, Hiroki Nakajima, admitted the zero-emission sedan has "not been successful" and that establishing a refueling network is "difficult to realize."

Hyundai's Nexo hasn't exactly been a commercial hit either, but even so, a second generation of the hydrogen crossover has been officially confirmed for a launch in mid-2025. Not only that but the Asian brand recently announced the much-hyped N Vision 74 sports car is going into production after all.

A collaboration between Toyota and Hyundai could be a huge deal given how Toyota ranks first in global sales while Hyundai (including Kia and Genesis) is third. That said, it's too early to tell whether the two automotive juggernauts will reach an agreement. It'll be interesting to see whether the two will stick to hydrogen or pursue other areas as well.