Apple Car Boost... Auto Parts Stocks Rally

Significant Surge in Hwashin and Guyeong Tech Following Hyundai Motor Collaboration News

[Asia Economy Reporter Minji Lee] The news of cooperation between Hyundai Motor and Apple, which influenced the domestic stock market last month, continues to expand its impact this month. As news spread that Hyundai Motor's self-developed electric vehicle platform E-GMP will be adopted in the Apple Car, related auto parts stocks are also showing an upward trend.

As of 9:30 AM on the 4th, auto parts company Hwashin rose nearly 20% during trading. Dongwon Metal (12%), Ajin Industry (11%), and others also maintained significant gains.

Since the beginning of this month, auto parts stocks have been on a steep upward curve. On the KOSDAQ market, Guyeong Tech surged 55% until the previous day, and Sangsin Brake (29.6%), Daesung Eltec (26.5%), Hyosung Advanced Materials (25.9%), Samwon Steel (24.4%), Mobease Electronics (24.6%), and KBI Metal (21%) also showed large increases. On the KOSPI market, Hanon Systems (13%), Mando (15%), Hyundai Mobis (9.4%), LG Innotek (7.2%), and Hyundai Wia (5.3%) also rose.

The rise in auto parts stocks is interpreted as being driven by the news that Apple will jointly develop the autonomous electric vehicle ‘Apple Car’ with Hyundai Motor Group. On this day, some U.S. media reported, "Apple has decided to partner with Hyundai Motor Group to produce the Apple Car, and will manufacture the autonomous electric vehicle at Kia Motors' plant in Georgia, USA." Following this news, stocks of parts companies located near Kia Motors' Georgia plant, where Apple’s contract production is likely, such as Guyeong Tech, Hwashin, and Dongwon Metal, have seen larger price increases. However, Hyundai Motor Group has been cautious, stating, "Nothing has been decided yet."

Auto parts companies showed an upward trend last year in the second half due to increased production volume and improved cost ratios of finished car manufacturers, but aside from the Apple Car issue, there are no clear positive factors currently driving the entire sector’s stock prices. Although concerns about production disruptions at domestic automakers persist due to ongoing vehicle semiconductor supply imbalances, expectations for the Apple Car appear to have a greater influence.

Experts believe that if production proceeds as expected, parts suppliers involved in E-GMP will also benefit. Kang Sung-jin, a researcher at KB Securities, said, "It is expected that Hyundai Motor, Kia Motors, and Hyundai Mobis, which directly participate in E-GMP development, parts production, and contract manufacturing, as well as parts suppliers delivering to electric vehicles on this platform, will benefit."

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