Seoul, South Korea – Hyundai Mobis, a leading automotive parts supplier, has unveiled its mid-to-long-term business goals, aiming to achieve 8% annual growth by 2027, its 50th anniversary, and become one of the top three global parts suppliers by 2033.
The company announced its ambitious plans at its first-ever CEO Investor Day, held on November 19th at the Fairmont Hotel in Yeouido, Seoul. The event aimed to share Hyundai Mobis' mid-to-long-term growth strategy, goals, and value-up direction with stakeholders.
Hyundai Mobis projects an annual average revenue growth rate of over 8% and an operating profit margin of 5-6% by 2027. This is attributed to the anticipated increase in revenue from large-scale investment projects initiated in recent years, leading to reduced costs and a positive investment return cycle.
"We expect to see significant revenue growth driven by high-value-added core components, leading to qualitative growth based on profitability," said Lee Gyu-seok, CEO of Hyundai Mobis. "Leveraging our leading technological capabilities, we will expand our sales to global automakers in the parts manufacturing sector to 40% by 2033, solidifying our position as a top 3 global parts supplier."
To achieve these goals, Hyundai Mobis will prioritize responding to the trend of software-defined vehicles (SDV) by securing core technologies in all areas, including electrification, electronics, chassis, and safety. The company plans to divide its business portfolio into growth businesses (electrification, electronics) and stabilization businesses (modules, chassis, safety, lamps, service parts), with the former focusing on proactive technology acquisition and the latter on improving profitability.
In the electrification sector, Hyundai Mobis will prioritize the development of extended-range electric vehicles (EREVs) and affordable electric vehicle drive systems. Additionally, the company plans to develop a 120kW affordable drive system by next year to target small EV markets in Europe and India.
In the electronics sector, Hyundai Mobis will provide total solutions encompassing hardware and software, such as integrated control platforms and integrated infotainment systems. The company has already completed the concept development of its first SDV software platform, "Vision Link," in collaboration with a North American electric vehicle company and plans to start full-scale promotions next year.
Hyundai Mobis also aims to achieve a 10% global market share in the chassis and safety sector by 2030 through strengthening its high-value-added product lineup, including electronic brake systems (EMB) and electronic steering systems (SBW).
Furthermore, the company plans to increase its total shareholder return (TSR) from the current 20% to over 30% within the next three years, balancing business growth with shareholder returns. Hyundai Mobis will also gradually dispose of its treasury stock over the next three years.
"While we have experienced a temporary slowdown due to our focus on proactive investments, we must now achieve qualitative growth based on profitability," said CEO Lee. "We will re-establish the company's corporate value by achieving a balanced growth in sales and profits, as well as investments and shareholder returns."
[Copyright (c) Global Economic Times. All Rights Reserved.]
