Electrification, Hyundai Mobis’ growth engine for future mobility

Hyundai Mobis Co., the world’s fifth-largest auto parts maker, is set to focus on electrification to enhance its competitiveness in future mobility, expecting electric vehicles to eventually become mainstream in the global automobile industry despite their recent slowing growth.

The unit of South Korea’s top automaker Hyundai Motor Group has been working on electrification, autonomous driving, infotainment and connectivity to secure key mobility technologies for future growth and profit diversification by providing mobility solutions combining software and hardware.

The company selected electrification as its core business among future mobility technologies as it has already accumulated expertise and know-how in the sector.

“Hyundai Mobis aims to control the future mobility ecosystem and develop top-tier products leading the market,” said a company official on Thursday. “We plan to actively win more orders from global automakers by focusing on electrification.”

Last year, the company proved its electrification technology with a deal to supply its battery system assembly, a core EV component, to Volkswagen AG for the world’s second-largest automaker’s next-generation platform for the clean vehicles.

Hyundai Mobis’ electrification division reported record sales of 12.2 trillion won last year ($8.9 billion) in 2023, up 26.6% from the previous year.

INDUSTRY’S FIRST TECHNOLOGY TO RAISE GLOBAL ORDERS

Hyundai Mobis introduced various new technology such as a rollable vehicle display and the Smart Cabin Controller, an integrated controller in the cockpit that monitors a driver’s condition for safer driving.

The company unveiled the MOBION EV equipped with its next-generation e-corner system motion technology featuring crab-walking and zero turns at the Consumer Electric Show (CES) 2024, the world’s largest annual tech trade show in Las Vegas, Nevada, in January, drawing huge crowds. 

Hyundai Mobis aims to increase orders from global automakers based on such technology to secure a future growth driver and improve profitability. Toward this end, the company is poised to converge software-oriented future technologies with its advanced know-how and competitiveness in core auto parts such as braking, steering, electronic suspension, airbags and lamps. 

The company bagged auto parts orders of a record $9.2 billion in total from foreign automakers last year, topping its initial target by 72%, thanks to stable quality, overseas production bases and sustained customer trust. It aims to win a combined $9.3 billion in parts deals from international carmakers this year.

SUSTAINABLE COMPETITIVENESS

Hyundai Mobis has been increasing its talent pool of 7,200 research and development engineers at home and abroad to strengthen its competitiveness in core future mobility technologies such as electrification, self-driving and connectivity.

The company opened an electrification research center in Uiwang, one of the satellite cities surrounding Seoul, last year.

Its future business strategy, quality competitiveness and customer priority were highly regarded. Fortune, a US global business magazine, named Hyundai Mobis one of the world’s most admired companies this year.

Including Hyundai Mobis, only four South Korean companies made it onto Fortune's list.

The company was the world’s fifth-largest auto parts supplier by sales last year, excluding EV battery makers, according to Automotive News.

Write to Jae-Fu Kim at hu@hankyung.com
 
Jongwoo Cheon edited this article.