Posted September. 26, 2017 08:04,
Updated September. 26, 2017 08:29
Hyundai Mobis Co. has won the largest scale orders this year from global automakers exclusive of Hyundai Motor and Kia Motors. The remarkable performance is attributable to the company’s strategy to expand into new markets with high quality auto parts and thereby wean itself off the Hyundai Motor Group, its parent company.
The auto parts company based in Korea announced on Monday that it obtained orders worth some 4.8 billion dollars (around 5.424 trillion won) in countries including the United States and China from January to August. The total price of contracts Hyundai Mobis sealed during the period grew 4.8 times from last year’s 1 billion dollars, and is almost a tenfold increase from 490 million dollars in 2015.
This year, Hyundai Mobis signed a supply contract of chassis modules for pickup trucks with a U.S. automaker. This is the first time that the company supplies chassis modules for pickup trucks, which are most popular in North America, primarily the United States. As pickup trucks are designed to carry heavy loads, chassis modules for them should be developed with advanced technology compared to other car models. In this sense, winning a contract to provide the modules in the U.S. market clearly indicates that Korea’s car parts maker is being recognized for having highly advanced technology and quality. More good news is that chassis modules have a higher unit price than other parts, greatly contributing to sales increase.
Also notable is another contract Hyundai Mobis newly closed with China’s local auto manufacturer, Zhejiang Geely Holding Group, through which it will supply audio amplifiers to several Geely-owned Volvo models manufactured in China. An audio amplifier is a device that runs an in-vehicle audio system, and is regarded as one of the so-called “empathy components,” which refer to parts or materials that are designed to not only perform intended function but also provoke and soothe our emotions. This is also the first time that Hyundai Mobis provides audio amplifiers in an overseas market.
“Hyundai Mobis’ success in entering into overseas markets is ever more meaningful as Hyundai Motor and Kia Motors are struggling with declining sales in China resulting from China’s economic retaliation for the deployment of the Terminal High Altitude Area Defense (THAAD) anti-missile system in Korea,” an industry insider said. The company, which will also supply electronic parking brakes (EPB) and rear lamps for another Chinese automobile manufacturer, commented that it will “step up its efforts to clinch more deals with local automakers and joint companies in China.”