Hyundai Mobis charts course for future growth

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Hyundai Mobis charts course for future growth

Published: 29 Oct. 2024, 14:51

Hyundai Mobis unveils an EV equipped with the next-generation “e-Corner System motion technology” at the 2024 International CES in Las Vegas, Nevada, held January 9-12. [HYUNDAI MOBIS]

Hyundai Mobis is adapting to shifts in the future mobility market and strengthening its global leadership as it looks to take a different route to success.

The Korean car parts company has mapped out a path focused on developing future growth drivers by expanding sales from global client firms and adapting to changes in the industry.

In recent years, Hyundai Mobis has demonstrated strong growth in supplying key finished car components to clients outside the Hyundai group. From vehicle electrification and electric parts to chassis components, the company’s key component sales grew fourfold over three years — from $2.52 billion in 2021 to $9.22 billion in 2023. Steady growth is likely to continue in 2024. External sales are also increasing their share of overall key component sales, rising from 6.4 percent in 2021 to 7.1 percent in 2022 and 10.4 percent in 2023.

These outcomes can be attributed to Hyundai Mobis’ extensive sales strategy, which acclimates to changing industry outlooks to chart the course for the company’s future growth.

By expanding the supply of its existing growth drivers, Hyundai Mobis was able to increase sales to finished automobile manufacturers and diversify its future sources of profit. Additionally, early investments in new technologies and businesses — such as vehicle electrification, advanced driver-assistance systems (ADAS), self-driving vehicles, in-vehicle infotainment (IVI) and connectivity — have allowed the company to secure growth drivers.

Vehicle sales experts have been placed at each location throughout Hyundai Mobis’ global network to expand sales opportunities. The company has also made active efforts to diversify its client base, partnering with the U.S.’s “Big Three” of GM, Ford and Stellantis, global European brands and more recently Chinese auto manufacturers. Research and development accomplishments under Hyundai Mobis have further diversified its strategic product portfolio to enhance sales.

These systematic and strategic efforts have resulted in overall growth, improved internal harmony and a stronger global leadership position. Hyundai Mobis achieved $37 billion in sales to finished vehicle makers. Notably, in a historic first, vehicle electrification sales exceeded 12 trillion won ($8.6 billion), showcasing the company’s growth in future-generation industries.

Among global competitors, Hyundai Mobis has maintained its place as the sixth-ranked automobile parts company for three consecutive years and was named in Fortune’s list of the “World’s Most Admired Companies.” It was the only company in the motor vehicle parts industry among the four Korean firms to make the list.

BY KIM YEONSOO [[email protected]]

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