Hyundai Mobis (KRX:012330) broke the record of overseas orders for its core parts thanks to its competitiveness in future car technologies.
On January 22, Hyundai Mobis announced that it won contracts for core automotive parts worth $1.7 billion (about KRW 1.9 trillion) from overseas automakers last year. Only high-tech core parts, excluding modular products of large assembly units were aggregated. The figure increased by more than 40% over the previous year, resulting in the largest order volume ever. The orders that Hyundai Mobis received in 2015 amounted to $500 million, $1 billion in 2016 and $1.2 billion in 2017 from overseas markets, thus ensuring annual growth.
The largest overseas orders it received last year were led by ˜its core future-car technologies and ˜orders from overseas electric vehicle companies.
¢ State-of-the-art future car technologies fueled the expansion of overseas orders
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Last year, Hyundai Mobis received a large order volume from overseas markets for its advanced parts possessing outstanding future car technological competitiveness.
Hyundai Mobis signed a contract for the supply of the ˜next-generation lateral radar (79GHz) to a North American company. As this radar can capably identify objects, it is deemed to be a highly advanced component that extends the sensing coverage of autonomous vehicles.
Its high-tech future technologies such as the ˜steering wheel mounted display and the ˜automotive smart lamp also won contracts from overseas companies. These products help facilitate the innovative communication between automobiles and users. Currently, Hyundai Mobis is the first in the world to start mass produce these products to fill the orders.
The ˜steering wheel mounted display is a future-oriented technology that helps communication between the driver and the vehicle by applying the information display and the tablet for controlling the vehicle to the steering wheel. The ˜smart lamp is a technology for expressing light patterns from a certain area of the vehicle. It provides a function that not only informs about the outside of the car, such as the electric vehicles charge state, but also enhances the design sensibility.
Core parts like the ˜electronic power steering system and the ˜airbag controller were also included in the product portfolios which were ordered by overseas companies last year. As the motor output of Hyundai Mobis ˜electronic power steering system is more than 40% greater than products of overseas competitors, it can maintain stable steering performance even in extreme handling. The ˜airbag controller is a product for which Hyundai Mobis became the first in the world to obtain the functional safety certification for electronic parts (ISO 26262).
¢ Orders from overseas electric vehicle companies in the US, Europe and China, etc. greatly increased
Last year, Hyundai Mobis received a great deal of attention from overseas electric vehicle companies in North America, Europe and China, etc. resulting in the greatest ever order volume received from overseas markets. The company received orders for advanced parts, worth close to $1 billion, 60% of its total overseas orders, from electric vehicle companies. Its orders increased a massive 60 times just three years after the company first received orders worth $15 million from overseas electric vehicle companies in 2016.
Hyundai Mobis is planning to continuously increase orders for high-value-added electronic parts this year as well. The percentage of overseas contracts of Hyundai Mobis, largely composed of electronic parts, was 17% in 2016 and 30% in 2017. Last year, it exceeded 50%, signaling that its overseas orders are sharply on the rise. The major ordered items are quickly diversifying to include connectivity products, such as advanced driver assistance systems and infotainment systems, including radars, etc.
Choon Kee Hwang