Hyundai Mobis, now the No. 1 automotive parts manufacturer in Korea, has decided to focus on electronic parts and technologies for environmentally-friendly intelligent cars as a new growth engine. The company has set the goal of becoming a global top five auto parts supplier by 2020 based on this new business area in addition to the efforts to expand its partnership with the Hyundai Kia Automotive Group.
“We will shift our business focus from chassis and other machinery modules to electronic parts and technologies,” Hyundai Mobis management said.
Currently, the company’s main businesses include the production of core automotive modules, development and production of in-car multimedia gadgets and safety and steering system technologies. The company was ranked 19th among global automotive parts manufacturers by Automotive News, a US based industry magazine at the end of last year. This was the first time for a domestic firm to be ranked within the top 20. However, instead of being satisfied with this, Hyundai Mobis strives to develop quality electronic modules of its own.
The company has been focused on acquiring fundamental technologies to be applied to future eco-friendly intelligent vehicles from a long-term perspective. It has designated battery packs for hybrid cars and other environmentally-friendly parts as new growth engines. Taking one step further, it plans to obtain technologies such as a lane control assistance system, self-parking, a collision avoidance system and adaptive cruise control for future intelligent cars.
Since January of this year, Hyundai Mobis has spent 320 billion won on the research and development of approximately 550 new products and technologies, a 50% increase from last year.
In addition, it aims to invest a further1.2 trillion won and double its R&D personnel to more than 2,000 in regards to electronic technologies for future cars. Its acquisition of electronic parts manufacturer, Hyundai Autonet last year was based on the company’s strategic decision that it should advance into electronic technologies in order to achieve its goal.
Furthermore, in an effort to reduce dependence on its parent company, it set a target to export US$ 760 million worth of modules and core parts to the luxury car market in Europe and the emerging Chinese market, a 40% increase from last year’s figure. Its overall sales goal for this year is 21 trillion won, more than a 20% increase from last year: annual increase of 11.7 trillion won (10% increase) for domestic market and US$ 8.9 billion (33% increase year on year) for overseas market.
In addition, the company, along with Samsung Electronics and LG Chemical, will develop a multifunctional nanocomposite, one of ten materials designated by the Korean government as being underdeveloped. As part of the efforts, the three companies formed a consortium and recently submitted a written suggestion regarding development of the material for energy saving and conversion to the Ministry of Knowledge and Economy.
Nanocomposite, a combination of carbon nanomaterials and multifunctional nanomaterials, is expected to be widely used in automobile, robotic and information technology related areas in the future. According to an analysis, Korea, which imports more than 90% of its light weight heat sink materials, retains related technologies comparable to those of foreign countries, and so is in a strong position to create a new market.