Mando will supply parts to Byton, China's new electric car brand, beginning at the end of next year. This move was made based on a strategy to make a foray into the world electric car market using China, which has huge growth potential, as a springboard.
"We recently signed a contract to supply exclusive parts for electric vehicles with Byton," an official of Mando said on May 28. "We cannot disclose the specific volume of the contract but we will supply components on a full scale starting at the end of next year when Byton produces electric cars." Mando will supply rack-assisted electronic power steering (R-EPS) systems, steering wheel columns, electronic brake systems and shock absorbers among others to Byton. In particular, the R-EPS system, which transmits the movement of the steering wheel to the wheels electronically, is the first component which Mando succeeded in mass-producing in Korea and is considered an essential element for self-drive electric vehicles.
Mando plans to target the global electric car market as well as the Chinese electric car market based on the new contract with Byton. Byton is an electric car brand launched by Future Mobility, an electric car startup founded by former executives of BMW, Tesla and Nissan. Future Mobility will launch electric cars in China, Europe and US markets in the fourth of next year.
It is also expected that the contract will have a positive impact on improving Mando’s business performances. Mando's sales sank to 5,684.7 billion won from 5,866.4 billion won in 2016. During the same span, its net profit plunged to 18.3 billion won from 210 billion won. In particular, its sales in China plummeted about 10%. "As the Chinese electric car market has big growth potential, we have growing expectations for an earnings improvement," a Mando official said.