Hyundai Mobis Breaks through $1 Bil. Milestone in Green Car Parts Sales

Hyundai Mobis has broken through the milestone of 1 trillion won in sales of parts for eco-friendly cars such as hydrogen electric car. The auto parts supplier accomplished the feat in nine years since starting mass production of core components for hydrogen electric vehicles for the first time in the world in 2009.

Hyundai Mobis announced on July 5 that the company posted 1.1 trillion won in sales of parts for green cars last year. This volume accounted for 10% of the company's total core parts sales last year. Hyundai Mobis's core parts for eco-friendly cars are inverter-integrated start generators, converters, battery systems, and hydrogen suppliers.

According to the 2018 Sustainability Report published by Hyundai Mobis, green cars (hybrids, electric vehicles (EV), plug-in hybrid cars (PHEV), fuel cell electric vehicles (FCEVs) loaded with parts produced by Hyundai Mobis swelled to 72,000, units in 2015, 129,000 units in 2016 and 250,000 units in 2017. As sales of eco-friendly cars in the global finished car market have increased, it is expected that the auto parts market will continue to grow.

In fact, Hyundai’s and Kia's sales of environment-friendly cars surpassed 100,000 units in the global market in May this year, up 12.7% from the same period of last year. This year, Hyundai Mobis supplies key components to Hyundai’s and Kia's 16 eco-friendly models including Hyundai Motor's hydrogen electric car Nexo and Kia's Niro EV.

In response to increasing demand for hydrogen electric vehicle parts, Hyundai Mobis built and began the operation of a core parts manufacturing plant for a hydrogen electric vehicle in Chungju of North Chungcheong Province in August last year. The new facility in which 70 billion won is invested, can produce 3000 powertrain fuelcell completes (PFCs) combined with core components.

Hyundai Mobis also explained its future car vision and R&D status including autonomous driving and connectivity in its sustainability report. First of all, the company plans to complete the development of five radar sensors capable of detecting 360 degrees outside vehicles for autonomous vehicles by the end of this year and begin mass production of the five sensors in 2021. In addition, Hyundai Mobis will scale up its R&D investment which is currently 7% of core parts sales to 10% by 2021.