Hyundai Mobis secured a record high of global orders totaling $9.2 billion last year on the back of the worldwide automation trend in the car sector, the South Korean auto parts manufacturer under Hyundai Motor Group said Monday.
Noting that the overseas orders significantly exceeded the originally set target of $5.6 billion, Hyundai Mobis highlighted that the new record was achieved through key parts orders signed with global automakers excluding the two Korean carmakers, Hyundai Motor Company and Kia.
The car parts maker said that it saw exponential growth in the global order backlog because it had secured a deal worth billions of dollars from a German automaker last year. In August 2023, the Korean company announced that it signed a large-scale order with Volkswagen Group for battery system assembly. The size or terms of the deal were not disclosed.
The battery system assembly, also known as BSA, is a product that combines a battery pack with the battery management system and other components to ensure the safe and efficient operation of the battery in an electric vehicle. The battery quality and performance of an electric vehicle greatly depend on battery systems.
Hyundai Mobis’ BSA is expected to be loaded onto Volkswagen’s next-generation platform for EVs. The Korean auto parts maker plans to build a new production facility in Europe at an unspecified site near the German automaker’s manufacturing plant.
Hyundai Mobis also attributed the company’s continuous and preemptive investment in research and development as the other major factor behind the growth of overseas orders. The company’s R&D investment reached 1.64 trillion won ($1.2 billion) last year, up about 20 percent on-year.
Hyundai Mobis logged an annual revenue of 59.25 trillion won last year, surpassing the record of 51.9 trillion won it had set in 2022. Its yearly operating profit reached 2.29 trillion won, a 13.3 percent increase on-year.
The auto parts maker said it will continue to seek new global clients this year as it focuses on vehicle automation, in-vehicle electronics, lamps and the chassis with its latest technologies including: an augmented reality head-up display, an advanced driver assistance system and a rollable display. Hyundai Mobis has set a goal of $9.4 billion in overseas orders for this year.