Tesla Gains Market Share in South Korea as Hyundai Targets 2028 for Autonomous Tech
The gap between Hyundai's self-driving timeline and Tesla's current foothold in South Korea illustrates a structural challenge facing the country's dominant automaker on its home turf.
Tesla is expanding its position in South Korea's electric vehicle market at a pace that is drawing scrutiny of Hyundai Motor Group's ability to compete domestically, according to reporting by the Korea Times.
Hyundai Motor Group's autonomous driving subsidiary, 42dot, announced last week that it plans to introduce vehicles equipped with Level 2+ autonomous driving technology in the first half of 2028, with Level 2++ capability to follow later that year. The technology will be built on Nvidia's platform, according to the Korea Times.
Level 2 autonomy, as defined by the Society of Automotive Engineers, means a system can control both steering and acceleration or braking simultaneously, but requires a human driver to remain engaged and monitor conditions at all times. Level 2+ and Level 2++ are incremental extensions of that standard, adding more automated functions while still requiring driver oversight.
The 2028 target places Hyundai's advanced driver-assistance rollout several years after competitors, including Tesla, have deployed comparable or more advanced driver-assistance systems in multiple markets, including South Korea itself. Tesla's Full Self-Driving software has been available to South Korean customers under regulatory conditions that the company has worked to expand.
South Korea is one of the world's most concentrated EV markets. According to the Korea Automobile Importers and Distributors Association, imported EVs, led primarily by Tesla, have taken a growing share of new registrations in recent years. Hyundai and its affiliate Kia remain the dominant sellers by volume, but Tesla's brand positioning in the premium and technology-conscious segments has allowed it to capture disproportionate visibility relative to its unit numbers.
The competitive dynamic is significant for South Korea's industrial policy. The government in Seoul has prioritized EV and semiconductor manufacturing as pillars of long-term export strategy, and Hyundai is central to that agenda. A sustained Tesla advance in the domestic market would carry symbolic as well as commercial weight.
Hyundai established 42dot as its dedicated autonomous driving unit following its acquisition of the startup in 2022 for approximately 600 billion won, equivalent to roughly $450 million at the time, according to prior Korea Times reporting. The unit is responsible for developing both the software stack and the hardware integration needed to bring autonomous features to Hyundai and Kia production vehicles.
The choice of Nvidia's platform aligns Hyundai with a widely used industry architecture. Nvidia's DRIVE platform is also used by several other automakers and autonomous vehicle developers globally. However, the use of a shared platform means differentiation will depend heavily on Hyundai's own software development, an area where traditional automakers have generally trailed technology-first competitors.
It is not yet known what specific regulatory approvals Hyundai will seek in South Korea or other markets ahead of the 2028 commercial launch. The Korea Ministry of Land, Infrastructure and Transport governs autonomous vehicle certification in South Korea, and no certification timeline for 42dot's system has been made public as of the date of this article.
Neither Hyundai nor Tesla responded publicly to requests for comment cited in the Korea Times report. The full competitive picture, including Tesla's planned product cadence in South Korea and Hyundai's intermediate steps before 2028, remains partially unclear pending further corporate disclosures.