Hyundai Mobis Declares Transformation into 'Platform and System Company' Combining SW+HW

Vice President Jeong Su-gyeong "Securing Future Status as a Leading Company in Platforms and Systems Combining SW and HW"

[Asia Economy Reporter Yu Je-hoon] Hyundai Mobis is transforming into a 'platform and system company' for sustainable future growth. As the global automotive industry rapidly evolves into a mobility platform ecosystem represented by electric vehicles, autonomous vehicles, and urban air mobility (UAM), Hyundai Mobis aims to break away from the framework of a 'comprehensive automotive parts manufacturer.'

On the 31st, Hyundai Mobis held a 'Future Strategy and New Technology Presentation Conference' at its Technology Research Center in Yongin, Gyeonggi Province, unveiling its mid- to long-term transformation strategy for sustainable future growth.

Jung Soo-kyung, Vice President and Head of Planning Division at Hyundai Mobis, stated, "In the automotive industry rapidly evolving into a mobility platform ecosystem combining products and services, a structural transformation is required in the role of global parts suppliers. We will secure our future position as a leading company in platforms and systems that combine software and hardware."

Hyundai Mobis’s mid- to long-term growth strategy (Transformation XYZ) is pursued in three main directions. First, it continues to transform into a global business operator for future growth (Transformation X). The core is to strengthen capabilities in key future vehicle technologies such as autonomous driving, electrification, and connectivity, and expand business with overseas automakers through this.

To this end, Hyundai Mobis is strengthening collaboration with global technology specialists. Representative examples include strategic investment in Velodyne, the world’s No. 1 LiDAR company, to promote mass production of Level 3 LiDAR systems, and collaboration with UK-based augmented reality (AR) head-up display (HUD) specialist NVIS to develop AR and hologram-based HUD technologies.

Additionally, Hyundai Mobis is innovating its business model (Transformation Y) based on these core capabilities. The plan is to expand its business scope into new mobility service markets tailored to customer needs. For this, Hyundai Mobis is developing Level 4 autonomous driving robot taxis through technology and business partnerships with Russia’s Yandex, and is also working on concretizing commercialization models.

In particular, Hyundai Mobis plans to focus on securing capabilities as a mobility service provider offering dedicated platforms to global electric vehicle and purpose-built vehicle (PBV) companies for this business model innovation. Furthermore, to build a value chain for new mobility services, it is also advancing smart factory infrastructure utilizing AI and big data.

Hyundai Mobis is also actively pursuing the discovery of long-term new growth businesses (Transformation Z). This is part of a plan to prepare growth engines beyond the existing automotive business sector for the future beyond 10 years. Recently, Hyundai Mobis added the manufacturing and sales of aviation mobility parts and robot parts to its business objectives as part of this plan.

Vice President Jung said, "The group is currently exploring cooperation in the UAM business sector," adding, "We expect that Hyundai Mobis’s business capabilities can be utilized in areas such as electrification propulsion systems and aviation electronics in the UAM business."

To support this, Hyundai Mobis will also increase investment in research and development capabilities. Hyundai Mobis plans to expand its direct investment in R&D from the current level of about 1 trillion KRW to approximately 1.7 trillion KRW by 2025. In particular, to secure proprietary technologies in the global market, it will increase resources for advanced technology R&D. The company plans to raise the ratio of advanced technology R&D expenses from the current 14% of total R&D expenditure to 30% by 2025.

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