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Hyundai Mobis logs 14% sales growth in 2023

Jan. 26, 2024 - 17:28 By Byun Hye-jin
A planner's drawing of a Hyundai Mobis car parts and battery modules plant in Ulsan (Hyundai Mobis)

Hyundai Mobis, an auto parts manufacturing unit under Hyundai Motor Group, said Friday its revenue surged over 14 percent last year to nearly 60 trillion won ($44.9 billion).

The company posted an annual revenue of 59.25 trillion won in 2023, breaking the record of 51.9 trillion won it set the year before. Its operating profit came to 2.29 trillion won, a 13.3 percent increase over the same period.

The stellar performance comes after an increase in the supply of electric car parts, following a boost in eco-friendly car production, and improved sales of profitable car components for medium-sized and large cars and sport utility vehicles, Hyundai Mobis said.

In the fourth quarter alone, however, revenue and profit dropped 2.1 percent and 20.8 percent to 14.67 trillion won and 523.2 billion won, respectively, compared to a year ago -- largely due to production cuts at its affiliate carmakers. Sales of modules and key car components, in particular, declined 3.1 percent to 11.89 trillion won, posting a deficit of 69.2 billion won.

In 2023, the company secured $9.22 billion in orders for car parts, surpassing the annual target by 172 percent.

It aims to secure $9.33 billion in orders this year -- $3.98 billion in Europe and India, $3.9 billion in North America, $1.24 billion in Japan and Korea and $208 million in China.

As for capital expenditure, Hyundai Mobis looks to ramp up investments to 3.1 trillion, compared to last year’s 2.6 trillion won, for production bases and research and development facilities.