Hyundai Mobis Invests 25 Billion KRW in US VC Fund to Accelerate Future Car Technology Leadership

Three Major Strategies: Direct Development, Direct Investment, and Indirect Investment through VC Funds

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[Asia Economy Reporter Kim Ji-hee] Hyundai Mobis is diversifying its future vehicle technology acquisition strategy by investing in global venture funds.

On the 2nd, Hyundai Mobis announced that it will invest a total of $20 million (approximately 25 billion KRW) in the US Silicon Valley element technology-focused tech funds ‘ACVC Partners’ and ‘MOTUS Ventures.’ This move is aimed at securing core future vehicle technologies and next-generation growth engines in preparation for rapidly changing business environments. Through this investment, Hyundai Mobis can proactively secure allies necessary for its future vehicle strategy, represented by autonomous driving, electrification, and connectivity.

Until now, Hyundai Mobis has focused on securing proprietary technologies by investing about 1 trillion KRW annually in research and development, centered on the Mabuk Technology Research Center and four global overseas research centers. Representative examples include the successful development of radar sensors with proprietary technology in 2018, which were previously fully imported, as well as independently securing camera systems for commercial vehicles and in-cabin sensing technologies. In addition, direct investments have been made in leading domestic and international companies such as StradVision and Velodyne.

Following proprietary development and direct investment, the company’s strategy is to accelerate technology acquisition through indirect investment in VC funds. Unlike direct investment aimed at technology cooperation and joint development, indirect investment utilizes the global network of VC funds. Hyundai Mobis plans to discover and nurture overseas startups possessing future vehicle element technologies in the mid to long term through this VC fund investment. Based on various collaboration opportunities, these will be integrated into Hyundai Mobis’s mid to long-term research and development strategy.

Hyundai Mobis is explaining its future vehicle development strategies, including autonomous driving and electrification, by inviting local startups and stakeholders at CES held earlier this year in Las Vegas, North America. (Photo by Hyundai Mobis)

The startups discovered by ACVC Partners and MOTUS Ventures are mainly in the fields of next-generation sensors, biometrics, and robotics in the North American region. Although commercialization within 1 to 2 years is difficult, these fields are considered promising technologies in the future vehicle market.

A Hyundai Mobis official stated, "These tech funds are highly regarded for their excellent ability to identify promising technologies from university research institutes and research organizations at an early stage, and they support synergy with invested companies. Hyundai Mobis is creating an ecosystem that allows collaboration with startups from the early stages, and plans to pursue large-scale equity investments once startup technologies are further advanced."

Thus, Hyundai Mobis has established a stable foundation for technology acquisition through a three-pronged investment approach: proprietary technology development, direct equity investment in global leading companies, and VC fund investment. This year, it also plans to discover promising startups in other global regions such as Europe.

This content was produced with the assistance of AI translation services.