Hyundai Mobis Rises
in Global Rankings

Auto parts maker ranked 10th largest in sales globally last year
with sales of $14.43 bln

Hyundai Mobis Co. ranked among 10 top auto parts makers in the world in terms of sales last year for the first time, while other Korean car parts makers including LG Chemical (9th), Hyundai Wia (45th) and Mando (53rd) ranked among the global top 100 firms in the industry.
According to the July 15 issue of Automotive Magazine, a car periodical published in the United States, Hyundai Mobis sold $14.433 billion worth of auto parts to move up two steps to rank 10th among the top 10 global auto parts makers from 12th in 2009.
In the past three years, the company moved up from the 19th, to 12th and now to 10th due to the hefty increase in the sale of its auto parts in North America valued at $2.74 billion, an increase of nearly 95 percent from $1.412 billion in 2009, to rank the 11th top seller of auto parts in the region.
MOBIS will be actively promoting itself in the global market. The Global Business Division has set a sales goal of $15 billion for this year and will be developing strategic products customized for each region, building a sales system centered on the domestic population, dedicating sales and R&D capacities for a successful entry into the Chinese market and attaining new customers through auto parts exhibitions.
The focus of these strategies was particularly on electronic devices, where the boundaries between automotive and mobile/IT technologies are becoming more and more blurred. Experts are forecasting that the percentage of electronic parts in any given car based on cost is currently at 20 percent and this is expected to increase to over 40 percent by 2015. MOBIS has started developing independent systems and strengthening its business agility for IT-related products; it has also set its sales target at 2.5 trillion won, which is 20 percent more than last year's target, with smart systems, environmentally-friendly technology and IT convergence products as the axis of the Electronic Devices Division.
According to data analysis firm Global Insight, 69.7 million cars were sold in 2010 worldwide, but that number is expected to increase to 75.8 million thanks to a smooth economic recovery in 2011. In addition, besides the markets in China and India, new emerging markets like Mexico, Australia and Vietnam -- aka MAVINS -- are coming into the limelight and the auto industry is expected to unfold into a big territorial war to attract buyers in these markets.
As a result, the Module Division will concentrate on the expansion of its global production base to support Hyundai KIA production and on its sales goal of 6.33 million units according to plan. The plan is to empower the independent management systems at each of the overseas plants in the United States, China, India and Europe as a way to raise product competitiveness, while preparing for the completion of the construction of the factory in Brazil and China's third factory in 2012.
Furthermore, following the stricter laws like the mandatory installation of ESC (2011 in Europe; 2012 in Korea), the basic installation of side airbags (Korea) and the trends toward staying safe and going green, MOBIS plans to maximize its overall sales and build stronger partnerships with international auto makers.

Auto Parts Division
The Auto Parts Division, which provides support for global sales of new Hyundai and Kia cars, will be working on securing new bases, thus optimizing logistics and inventory management and completing other innovative logistics paradigms.
Three new bases will be added to the current roster of 29 logistics centers in the United States, China, Europe and Russia to bring the total to 32. The new bases will be located in Italy, Russia and China. The Direct Delivery System, which has reduced many steps in logistics, will be utilized to more smoothly supply various parts to dealers and customers. Another goal is to maximize customer trust by getting fully equipped with a distribution system for 1.65 million items for 179 models (including the models to be newly released in 2011) in operation both in Korea and overseas.
The ultimate goal for MOBIS is to acquire key technologies at the level of the global Top Five companies and to evolve into an automotive electrical parts specialist, said MOBIS Vice-Chairman Chung Suk-soo. He added, We will continue to work on key technologies and marketing skills to boost the overall global competitiveness of Hyundai KIA Motor, as well as to win more contracts with international carmakers. nw

Source; Hyundai Mobis

Photo on Courtesy of MOEL

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