On Nov. 25 (local time), construction began on Hyundai Motor’s electric vehicle-dedicated factory, “Hyundai Motor Group Metaplant America (HMGMA),” in Ellabell, Georgia, the U.S.
Alongside the increase in automobile exports, the export of automotive parts is also on the rise. As the supply of finished vehicles to the global market continues to grow, there is an outlook for a simultaneous increase in parts exports.
According to the Korea International Trade Association on Nov. 28, the export of automotive parts reached an all-time high at US$19.9 billion last year. This year, it has already accounted for 82 percent of last year’s total, with exports totaling US$16.3 billion until last month.
In particular, the export value of aftermarket service parts for existing vehicles amounted to US$530 million in the third quarter of this year alone. This represents 0.3 percent of the total export value during the period. It indicates a resurgence in the export contribution of automotive parts along with finished vehicles.
In response, automotive parts companies are actively pioneering the global market by not only exporting but also establishing production bases overseas.
Hyundai Mobis has established module factories in Ohio and Michigan in the United States, supplying chassis modules to the U.S. automotive company Stellantis. The two facilities alone have recorded a cumulative production of 6.38 million units as of last year.
Since the second half of last year, Hyundai Mobis has been producing chassis modules at its Alabama plant in the United States, supplying them to Mercedes-Benz’s electric SUVs built on a dedicated platform. Additionally, the company provides Stellantis and General Motors with head and rear lamps, display modules, industrial control systems (ICS) and parking brakes.
Hyundai Mobis secured a record-breaking contract worth 5 trillion won for a battery system assembly (BSA), a crucial component for electric vehicles, from Germany-based Volkswagen in August. This marks the largest-ever order for electric vehicle components. Volkswagen plans to integrate Hyundai Mobis’ BSA into its next-generation electric vehicle-dedicated platform.
Since 2020, Hyundai WIA, a parts affiliate of the Hyundai Motor Group, has been supplying constant velocity joints to automotive manufacturers in Europe and North America. Constant velocity joints are essential components that transfer the driving force from the engine and transmission to the wheels.
HL Mando is also expanding its dealings not only with Hyundai Motor and Kia Motors but also with global automotive manufacturers such as GM and Ford. Furthermore, the company is diversifying its export regions to include China, India, and Europe. The global sales revenue of HL Mando last year stood at 7.52 trillion won (US$5.8 billion), three times the domestic sales revenue of 2.64 trillion won last year. To cater to overseas customers, HL Mando operates 19 production bases in the United States, Europe, China, and India, with 18 affiliated technology research centers.