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Hyundai Mobis Achieves Record $9.17 Billion in Orders

Hyundai Mobis, a leading automotive supplier based in South Korea, announced a remarkable achievement by securing $9.17 billion in orders from global automakers in the previous year. This accomplishment surpasses its initial target of $7.45 billion by an impressive 23%, marking a significant milestone for the company amid ongoing challenges in the electric vehicle (EV) market.

Driving Factors Behind Success

The success can largely be attributed to the robust demand for electrification components, alongside an expanded supply of advanced electronic components. The company has been proactive in its market penetration efforts, especially in emerging economies like China and India, which have become increasingly important markets for automotive suppliers.

Despite the current adjustments many automakers are making to their vehicle launch plans in response to the evolving landscape of EV technology, Hyundai Mobis's sustained investments in research and development have placed it at the forefront of innovation. This has enabled the company to attract substantial overseas orders from a diversified customer base.

Ambitious Targets for 2026

As Hyundai Mobis looks ahead, it has set an ambitious global order target of approximately $11.84 billion for this year. This goal represents a 30% increase from the previous year, driven by both core components and large-scale module orders. The strategy incorporates region-specific sales tactics and close collaborations with key customers to further solidify its market position.

Major Contracts in North America and Europe

Last year, significant orders were secured from two major automakers in North America and Europe for critical electrification components. Notably, the company is supplying Battery Systems Assemblies (BSA) and chassis modules. While specific customer names and contract values remain undisclosed due to confidentiality agreements, it's understood that these contracts represent a substantial portion of last year's total order volume.

Hyundai Mobis anticipates that these partnerships will yield long-term benefits, as contracts for large components like BSAs typically involve joint investments that can last two decades or more. Notably, the company has maintained a partnership with Chrysler (now part of Stellantis) since 2005, highlighting its capacity to foster long-term client relationships.

Expansion of the Electronic Components Market

In addition to electrification, the company has successfully enhanced its footprint in the electronic components sector. Orders for advanced Human-Machine Interface (HMI) products have been secured from a leading North American customer. The next-generation HMI systems provided by Hyundai Mobis are recognized as a flagship product, showcasing advanced technologies that set them apart in the global market.

Furthermore, Hyundai Mobis's sound systems have gained traction among premium brands, successfully overcoming the traditional preference for locally developed audio systems in foreign markets, showcasing the company's technological prowess. In emerging markets like India, tailored strategies have resulted in increased demand for core components, while in China, new orders from local EV manufacturers demonstrate Hyundai Mobis's competitive sourcing capabilities.

Looking Forward

Jae-mok Cho, Head of Global Sales at Hyundai Mobis, expressed optimism about the coming year. He acknowledged that while uncertainty prevails in the business environment, the company intends to boost its efforts in acquiring orders by leveraging its strengths in electrification and electronic components.

As a key player in the automotive supply sector, Hyundai Mobis continues to innovate and adapt, positioning itself effectively to meet the evolving demands of the global automotive market. For more information about their extensive range of products and services, please visit Hyundai Mobis’s official website.

About Hyundai Mobis

Hyundai Mobis stands as the sixth-largest automotive supplier worldwide and has established itself as a leader in developing safety control systems, alongside a robust portfolio that includes electrification components, braking systems, and automotive electronics. With advanced R&D facilities in South Korea and multiple technology centers around the globe, Hyundai Mobis is poised for continued growth in the automotive industry.