South Korean auto parts maker Hyundai Mobis said Tuesday that it expects to secure $1.07 billion worth of orders from China this year amid recovering sales following the improvement of relations between China and Korea.
An employee works inside Hyundai Mobis’ factory in Tianjin, China. (Hyundai Mobis)
“We have been gradually increasing our market share in China, focusing on our key components sales with global product quality competitiveness. With increased brand value as a high-tech auto parts maker, we expect to penetrate the market by achieving $1.07 billion in orders from China this year,” said Chung Soo-kyung, the company’s executive director.
According to Hyundai Mobis, from January to early May this year, the company has already won $423 million of orders, a 46 percent increase from the total amount made last year.
Last year, the company raked in $289 million of orders on key auto parts components in China. It achieved $151 million and $148 million in 2016 and 2015, respectively.
With the Chinese auto market expanding and accelerating the development of electric vehicles, Hyundai Mobis has been spurring the supply of key auto components to China’s local and electric vehicle manufacturers.
“The high performance in China comes after continued orders for our high-end components like head-up displays and premium sound systems,” said a Hyundai Mobis official.
Recently, Hyundai Mobis clinched a deal with one of China’s top five car manufacturers to supply $200 million worth of premium sound systems. Its sound system equipped with eight channel amps and 12 speakers will be adopted in the Chinese partner’s major vehicle models that will be rolled out from 2020.
It also signed a contract with another Chinese automaker to provide $35 million worth of HUDs from next year.
HUD is one of the future tech-incorporated devices that the company has been making efforts to develop in order to expand its presence in the global market.
HUD is a display system that uses laser scanning to create and project virtual images on a visible area, such as the front window of a car. Information regarding the speed of the car, navigation and driving assistance systems, such as advanced driver-assistance systems, can be displayed.
Starting with the Chinese market, Hyundai Mobis said it would target to achieve $10 billion worth of orders globally by 2022.
It will also gradually reduce its heavy dependence on sales to Hyundai Motor and Kia Motors to 60 percent from the current 90 percent, the company said in a statement.
By Kim Da-sol (
ddd@heraldcorp.com)