Doosan Robotics expands cobot supply to Hyundai Motor, eyes further growth

Doosan Robotics' P-series collaborative robots. [Doosan Robotics]

Doosan Robotics is supplying collaborative robots to Hyundai Motor, laying the groundwork for an earnings recovery. The company plans to expand cobot orders by adding new customers while partnering with Nvidia to build a new growth engine.

Doosan Robotics said Tuesday it had already secured mid- to large-scale deals, including an ongoing supply of collaborative robots to Hyundai Motor, according to remarks made at a second-quarter earnings conference call for securities firms on Friday. Under the contract, Doosan Robotics cobots are being deployed on some assembly lines at Hyundai Motor factories in South Korea and abroad.

Doosan Robotics had previously supplied cobots to the Hyundai Motor Group Innovation Center Singapore (HMGICS), which was completed in 2023. The trust built through that earlier partnership is seen as having led to the additional orders.

Alongside Hyundai Motor, Doosan Robotics cited global auto parts maker Gwangjin Group and Thai robot systems integrator VRNJ as companies with which it has signed mid- to large-scale contracts. The number of cobots being supplied to Gwangjin Group and VRNJ stands at 100 and 300 units, respectively. Based on those figures, analysts estimate that more than 100 Doosan Robotics cobots are also being supplied to Hyundai Motor. A company official, however, said the scale of that contract "cannot be confirmed."

The string of major orders is driving a clear improvement in Doosan Robotics' earnings. Sales in the first half of this year reached 33 billion won ($22.5 million), more than tripling from 9.8 billion won in the same period last year. Over the same period, the operating loss narrowed from 27.8 billion won to 26.5 billion won. With products still to be delivered to Hyundai Motor, Gwangjin Group and VRNJ, a further earnings rebound is expected in the second half of this year.

At the second-quarter earnings call, Doosan Robotics said it expects consolidated sales to grow more than 100 percent year-on-year this year, adding that a sharp improvement in profitability should become visible from next year, given that investment has continued through last year and this year.

Reflecting its growing order book, Doosan Robotics has established a firm position in the cobot market. The company leads the domestic market and ranks among the top five globally.

Building on that market standing, Doosan Robotics plans to pursue additional large-scale orders. Market conditions are favorable, with demand for collaborative robots rising as global companies push to convert to smart factories in a bid to cut labor costs. Collaborative robots carry the advantage of being safer than conventional industrial robots, as they are designed to work alongside humans.

According to market research firm Global Market Insights, the global collaborative robot market is projected to grow at a compound annual rate of 32.4 percent, from $1.86 billion in 2024 to $30.55 billion by 2034.

Kim Min-pyo (far right), CEO of Doosan Robotics, speaks with Madison Huang (second from left), senior director of marketing at Nvidia, at a Doosan Robotics facility. [Doosan Robotics]

Doosan Robotics also plans to strengthen its new business capabilities on the back of its cobot success. The company intends to unveil an intelligent robot solution based on an agentic robot operating system next year, with an industrial humanoid robot product slated for release in 2028.

To demonstrate progress in its new businesses, Doosan Robotics is collaborating with Nvidia. In April, Madison Huang, senior director of marketing at Nvidia and eldest daughter of CEO Jensen Huang, visited a Doosan Robotics facility. The company is developing its agentic robot operating system using Nvidia's simulation platform.

yeongdai@heraldcorp.com