Global auto parts vendor surpasses initial target of US$ 5.36 billion by 72%; explosive increase in its overseas orders attributed to securing multi-trillion won orders for electrification components from European automakers including Volkswagen.
31 Jan 2024 | 4817 Views | By Autocar Professional Bureau
Hyundai Mobis has capitalised on the global trend of electrification and achieved record overseas business in CY2023.
Surpassing its annual target significantly, Hyundai Mobis states that it has secured orders worth US$ 9.22 billion from overseas automakers in North America and Europe last year. This achievement, a 72% increase ...
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Hyundai Mobis has capitalised on the global trend of electrification and achieved record overseas business in CY2023.
Surpassing its annual target significantly, Hyundai Mobis states that it has secured orders worth US$ 9.22 billion from overseas automakers in North America and Europe last year. This achievement, a 72% increase over the initial target of US$ 5.36 billion, marks the company's highest-ever order performance.
The explosive increase in Hyundai Mobis' overseas orders last year is attributed to securing multi-trillion won orders for electrification components from European automakers. Hyundai Mobis bagged an order from Volkswagen last year for the Battery System Assembly (BSA), a key electrification component. This battery system is slated for integration into the German automaker’s next-generation electric vehicle platform. Hyundai Mobis plans to establish a new production base near the automaker’s factory in Europe to ensure a stable supply of components.
Sustained and proactive investment in research and development has also been a critical factor in boosting overseas order performance. Hyundai Mobis' R&D investment last year reached KRW 1.59 trillion, an increase of about 16% from the previous year. The company increases its R&D expenditure annually, securing differentiated product competitiveness in core future mobility areas such as electrification, autonomous driving, and connectivity.
Growth strategy focused on key electrification components
This year, Hyundai Mobis plans to actively pursue new customers overseas, focusing on strategic components such as electrification, electrical systems, lamps, and chassis. Centered around key electrification components that have opened the floodgates for large-scale orders, the company intends to strengthen its order portfolio with products incorporating various cutting-edge technologies, including Augmented Reality Head-Up Displays (AR-HUD), Advanced Driver Assistance Systems (ADAS), independent rear-wheel steering systems (RWS), and rollable displays. Hyundai Mobis has set an ambitious target of USD 9.34 billion for core auto component orders from global automakers this year, aiming to continue last year's robust momentum.
To tighten its grip on overseas orders, Hyundai Mobis actively engaged in aggressive sales activities at CES 2024 earlier this month, meeting with various global customers. The company showcased 20 types of mobility technologies immediately applicable to mass production, including transparent displays and 22Kw integrated charging control modules (ICCU).
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