SEOUL, April 26 (Korea Bizwire) – Hyundai Mobis Co., South Korea’s biggest auto parts maker by sales, on Thursday outlined its growth plans in line with its parent Hyundai Motor Group’s broad governance restructuring program.
The move comes after Hyundai Motor Group announced last month that auto parts supplier Hyundai Mobis will spin off its domestic module and after-sales parts businesses and merge them with logistics affiliate Hyundai Glovis Co.
All the plans are subject to approval at Hyundai Mobis’ and Hyundai Glovis’ general shareholder meetings scheduled for May 29.
After the spinoff and merger, Hyundai Mobis plans to focus on further beefing up its core auto parts operations and research and development (R&D) activities, as well as on developing future growth drivers like autonomous vehicles and connected cars.
Under its midterm growth plans, Hyundai Mobis aims to achieve an average of 8 percent growth annually to report sales of 44 trillion won (US$40.7 billion) in 2025 by focusing on future vehicles and core auto parts, the company said in a statement.
The company expects to report 25 trillion won in sales this year after the group’s streamlining process. It forecast the figure to rise to 36 trillion won in 2022.
To help achieve the sales figures, the company said it will focus on increasing auto parts orders for its global clients to $10 billion in 2022 from $6 billion last year. In Korea, Hyundai Motor Co. and Kia Motors Corp. are its two major customers.
As for investments, Hyundai Mobis said it plans to raise the ratio of R&D investments out of parts sales to 10 percent by 2021 from the current 7 percent level.
It believes the investments will help it develop technologies involving radar, cameras and other sensor systems for autonomous vehicles by 2022.