A predecessor based in Korea, Hyundai Motor Sport, existed at least between 1998 and 2003. This was the department of Hyundai that contracted Motor Sport Developments to run campaigns in the 2-Litre Cup of the World Rally Championship with the Hyundai Coupe F2, and in the WRC Manufacturer's championship with the Hyundai Accent WRC. In September 2003, after a season hampered by budget constraints, Hyundai withdrew from the WRC, severing the partnership with MSD while vowing to return with an in-house operation based in Germany for 2006.
Nine years later at the 2012 Paris Motor Show, Hyundai announced it would be returning to the WRC in 2014 using the i20 model built to World Rally Car specifications. As promised, on 19 December 2012 Hyundai Motorsport GmbH was established in Alzenau, Germany.
In December 2015, the Customer Racing department was established to provide rally and touring cars and services to private customers.
HMSG developed the Hyundai i20 WRC for use in the WRC from 2014. An evolution, the i20 NG (Next Generation) was run in 2016, before being replaced in 2017 with the Hyundai i20 Coupe WRC due to new regulations. In 2022, with another new set of regulations, the hybrid i20 N Rally1 was launched after a delayed and interrupted development caused by internal turmoil and the departure of team principal Andrea Adamo.
Juho Hänninen, Bryan Bouffier, and Chris Atkinson served as development test drivers in 2013. Thierry Neuville was named lead driver for the debut World Rally Championship season and has remained with the team ever since the Monte-Carlo Rally in January 2014. He and Hyundai took the team's first victory at that year's Rallye Deutschland. Dani Sordo is also a long-time team servant though has not contested as many rallies. Other drivers have included Hayden Paddon, Kevin Abbring, Andreas Mikkelsen, Sébastien Loeb, Craig Breen, Ott Tänak, Oliver Solberg, Esapekka Lappi, and Adrien Fourmaux.
Hyundai Motorsport won the 2019 Manufacturer's championship title and repeated the feat in 2020.
Hyundai's 2023 WRC2 campaign was run by French racing company 2C Compétition using Hyundai i20 N Rally2 cars. In 2022, Estonian-based RedGrey Team (former MM Motorsport) were contracted to enter WRC2 on Hyundai's behalf. RedGrey is also part-owned by Ott Tänak, who in 2022 was a contracted Hyundai World Rally Team driver.
The Customer Racing department's first project was an R5 specification car based on the Hyundai i20 model, which debuted in September 2016 at the Tour de Corse with three entries. The Hyundai i20 R5 was first tested in January 2016 and quickly made a name for itself, taking wins and championships in local and regional championships around the world.
The Hyundai i20 N Rally2 is the successor to the i20 R5, built to Group Rally2 specifications and debuted at the 2021 Ypres Rally. Pierre-Louis Loubet, Ole Cristian Veiby, Oliver Solberg, Nils Solans, and Ken Block have all driven the World Rally Car on behalf of independent team 2C Compétition.
In early 2017, Hyundai Motorsport announced it was developing an i30 N touring car based on TCR regulation. The car made its debut in the Touring Car Endurance Series 24h of Misano before being made available to customers by the end of the year.
For the 2018 World Touring Car Cup (WTCR), two teams entered the Hyundai i30 N TCR: YMR with Yvan Muller and Thed Björk, and BRC Racing Team with Gabriele Tarquini and Norbert Michelisz. Tarquini clinched the inaugural WTCR Driver's Championship, and YMR secured the Teams' Championship. The i30 N TCR also won the USAC Pirelli World Challenge TCR class in 2018 with Bryan Herta Autosport in owner and manufacturer championships.
BRC Racing Team entered four i30 N TCR cars in the 2019 World Touring Car Cup season, with Tarquini, Michelisz, Augusto Farfus, and Nicky Catsburg.
Hyundai added the Veloster N as a TCR option in 2019 for markets where the i30 is not sold. The Veloster N competed in the 2019 Michelin Pilot Challenge and the 2019 24 Hours Nürburgring under the Hyundai Motorsport N marque alongside a Hyundai i30 N TCR, with both cars finishing on the podium of the TCR class. An electrical version — the Veloster ETCR — was unveiled in 2020 to compete in the Pure ETCR championship from 2021.
In 2020, a third TCR car based on the Hyundai Elantra saloon model was unveiled by Hyundai Motorsport Customer Racing. It made its competitive debut at the 2021 Michelin Pilot Challenge season opener at Daytona International Speedway.
On 12 September 2024, Hyundai Motorsport announced that it will enter the FIA World Endurance Championship, building a car to the LMDh regulations using the Genesis brand under the title Genesis Magma Racing.
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