Hyundai Mobis announced on Arpil 26 that it would focus on the future car business and achieve sales of 44 trillion won (US$39.6 billion) by 2025.
To this end, the company plans to raise the proportion the future car and core parts businesses to 40% of its sales, and pursue mergers and acquisitions (M& As) to secure new technologies.
It was the first time that Hyundai Mobis disclosed its mid- to long-term vision. Recently, Elliott Management, a US hedge fund that came up with proposals regarding Hyundai Motor Group's plan to reform corporate governance, pointed out that the group's reform plan lacked visisons.
Under the reform plan, Hyundai Mobis will be put on the highest rung of the governance ladder, playing the role of a de facto holding company for the automotive group.
Hyundai Mobis said its sales would reach reach 25 trillion won (US$22.5 billion) this year. The long-term vision sees the company boosting its sales to 44 trillion won (US$39.6 billion) by 2025 by growing the future car business based on enhanced core parts and system integration capabilities.
Hyundai Mobis aims to earn 11 trillion won (US$9.9 billion), a quarter of the sales goal, in the future car business, including autonomous driving and connected cars, seven trillion won (US$6.3 billion) in the next-generation core parts business, including brakes, steering and electronic devices.
The remaining 26 trillion won is expected to come from the investment business, which includes the company's overseas operations and equity investment in other corporations.
According to this roadmap, Hyundai Mobis's sales targets for the future car, core parts and investment businesses for 2025 are 2.2 times, 1.7 times, and 1.6 times higher than the sales figures forecast for this year.
In particular, Hyundai Mobis plans to complete an autonomous navigation platform and connectivity system by integrating key technologies such as sensors, control and judgment logic and ECU controllers in the autonomous driving sector, and next-generation displays in the connectivity sector.
It intends to secure its own technologies for all sensors for radars, cameras and LIDAR step by step by 2022 and apply them to mass-production.
The company will also steadily develop various technologies of advanced driver assistance systems (ADAS), including remote automatic parking, automatic braking, and lane departure prevention.
In addition, Hyundai Mobis plans to fuel sales growth by proposing its own technologies to Korean and foreign automakers. The list of such technologies includes an autonomous navigation platform developed through collaboration and joint R&D with technology companies.
This approach will make the company more independent and reduce its heavy reliance on Hyundai Motor and Kia Motors.
The company current has cash equivalents worth 6.5 trillion won (US$5.8 billion) and increase its investment capability with revenues from the core parts and investment businesses.