Hyundai is negotiating a multi-year deal to supply up to 50,000 IONIQ 5 electric SUVs to Waymo, equipped with Waymo Driver, potentially by 2028, marking a landmark in autonomous-vehicle supply.

The 50,000 units would use Hyundai’s E-GMP platform and integrate Waymo’s sixth-generation autonomous stack, representing a deep hardware-software partnership.

This proposed arrangement builds on a 2024 collaboration to embed Waymo Driver into Hyundai EVs, signaling a shift toward large-scale, AI-powered mobility solutions.

Analysts point to societal benefits from autonomous mobility, including fewer traffic fatalities, smarter urban mobility, and expanded delivery and logistics use cases, along with a need for AI maintenance skills.

Regulatory and safety considerations include permits, GDPR-aligned data privacy practices, and safety validations under NHTSA guidelines, with Waymo already navigating California permits in prior years.

Waymo is expanding across Phoenix, Los Angeles, San Francisco, and Austin, with planned partnerships in Nashville and Dallas for 2026, showing a diversified growth model.

A secure, large-scale EV platform supply would accelerate Waymo’s robotaxi fleet expansion and support operations in multiple cities, including ongoing work in Nashville.

Industry outlook highlights a potential autonomous-vehicle market reaching trillions, with monetization through AI-driven fleets and ride pricing in the low-dollar per mile range.

The business model envisions separating base vehicle costs from sensor and compute hardware, creating a layered capital approach where perception hardware and onboard computing drive margins.

The deal exemplifies a broader shift to a “manufacturing plus services” model in autonomous mobility, combining vehicle production with ongoing data-driven services.

If realized, the deal would reinforce Waymo as the auto industry’s preferred partner for autonomous tech, positioning it to scale operations faster than rivals.

The Hyundai-Waymo collaboration offers a supply-chain and scale advantage amid competitive pressure from Tesla and Cruise, aiming to reduce costs via standardized platforms.