Hyundai Mobis to commit 1 trillion won to tech R&D

Hyundai Mobis Sustainability Report 2020. [HYUNDAI MOBIS]

Auto parts maker Hyundai Mobis will invest 1 trillion won ($809 million) in tech research and development (R&D) this year.

In a sustainability report published Wednesday, the company disclosed plans to embark on more than 2,000 R&D projects in 2020. This is 16 percent more than last year. The company currently has just under 5,000 R&D employees at the moment but said they plan to break this key level this year with new hires.

The announcement comes amid a difficult business environment as the Covid-19 pandemic has affected the global vehicle market in terms of both supply and demand. Hyundai Mobis explained in a statement that the investment plan was devised despite the crisis, to continue the technology development drive for vehicles of the future.

Its focus on start-up investment and co-development in R&D will be centered on infotainment technology for cars and advanced driver assistance systems (ADAS). Mobis Ventures, the company's venture arm with offices in Sunnyvale, California, and Shenzhen, China, will be in charge of sourcing relevant opportunities.

In regards to production, another pledge made was that the company would fit all of its “core production factories” with solar energy panels and energy storage systems (ESS) by 2025.

“This will make us not only a consumer of clean energy but a producer as well,” the company said in a statement.

Behind the move is strengthened regulation in the United States, Europe and Korea — its largest markets — on carbon emissions and energy use. Hyundai Mobis had upgraded its power control systems last year, and this year will start supporting its suppliers to adopt systems for efficient energy consumption.

Hyundai’s third promise was to improve social responsibility programs so that it would directly benefit the car industry. After the pandemic’s outbreak, Hyundai offered auto parts at a discount price to 1,000 parts retailers and extended the due date of their debts.

Published every year, the sustainability report for 2020 was the company's 10th.

BY SONG KYOUNG-SON [song.kyoungson@joongang.co.kr]