Competitiveness of Korean Products Conveyed by a 40-Year Japanese Veteran

Hyundai Mobis Tokyo Branch Manager Local Interview
Only Korean Company Participating in Japan Mobility Show 2023
Joined Last Year After Over 40 Years at Mitsubishi
"Must Have Significantly Superior Product Quality to Increase Order Possibility"
Competitive Advantage in Electrification and Advanced Driver Assistance Parts

"Subtle differences do not work in the Japanese market. The product must have overwhelmingly superior qualities. I believe we have sufficient competitiveness in electrification parts."

On the 25th, Yukihiro Hatori, head of Hyundai Mobis's Tokyo branch, said this in an interview with the Korea Automobile Journalists Association. Hatori has over 40 years of experience working at Mitsubishi Motors in Japan and was recruited by Hyundai Mobis last year. He mainly worked in design and purchasing. Based on his extensive human network across the local complete vehicle and parts industries, he is at the forefront of Mobis's local sales efforts.

Yukihiro Hatori, Head of Hyundai Mobis Tokyo Branch, is being interviewed on the 25th at Tokyo Big Sight, Japan, during a meeting with the Korea Automobile Journalists Association. Hyundai Mobis was the only Korean company to participate in the Japan Mobility Show 2023, which started with a pre-press event on the same day.
[Photo by Korea Automobile Journalists Association]

Hatori said, "The Japanese complete vehicle industry is strongly vertically integrated, and there is a strong tendency to procure parts within a fixed supply system. While functionality, price competitiveness, and performance are all important, it is necessary to significantly widen the performance gap compared to other parts companies to pioneer new customers."

He cited electrification parts and various Advanced Driver Assistance Systems (ADAS) parts as examples. These products have recently seen a sharp increase in global usage. Hatori also mentioned that Hyundai Mobis is currently negotiating with various local manufacturers to supply in this field. During the Japan Mobility Show 2023, which opened that day, he had a tightly scheduled series of meetings with local industry stakeholders. Hyundai Mobis was the only Korean company participating in this event.

He said, "Our electrification products have shorter charging times than competing Japanese companies. The integrated electrification units (EDU), including motors, inverters, and transmissions, are smaller and lighter while delivering higher output, giving us a competitive edge over Japanese products."

At the Hyundai Mobis Media Tech Day held last June, a company employee is explaining technologies applicable to next-generation displays. In next-generation technology fields such as electrification components, the competitiveness of Korean products has increased, attracting significant interest in Mobis products and technology from Japanese automakers.
[Photo by Yonhap News]

Japanese consumers tend to be conservative, and the complete vehicle market is formed mainly around domestic brands. The parts supply chain is similar. It is robust, making it difficult for foreign companies to break in and do business. However, with the strong trend toward electrification, signs of change are emerging. Since the existing parts supply chain is mainly focused on internal combustion engines, companies like Mobis that have a competitive advantage in future automotive fields are in a position to make a significant impact.

Hyundai Motor Group is regarded as proactively responding among global manufacturers in the electrification transition process. Hatori said, "Japanese companies move cautiously, going through multiple rounds of research, verification, and validation during development, whereas Korean companies have a very fast decision-making process."

At the Japan Mobility Show 2023, which opened with a pre-press event on the 25th, reporters gathered around the Toyota exhibition area.
[Photo by Korea Automobile Journalists Association]

Hyundai Mobis has been pursuing diversification of customers beyond its affiliated complete vehicle companies (Hyundai Motor and Kia). Overseas orders, which were about $1.76 billion in 2020, more than doubled to $4.65 billion last year. This year, orders have already exceeded last year's annual amount, reaching $5.36 billion as of this month.

Since last year, Hyundai Mobis has supplied chassis modules for electric vehicles to the German luxury brand Mercedes-Benz. Europe's largest brand Volkswagen also uses Mobis's electrification parts. They are also developing technologies that operate increasingly used displays or integrate and recognize biometric signals such as driver posture, heart rate, and brain waves to control the vehicle. These are advanced technologies with high applicability to future vehicles.

Yukihiro Hatori, Head of Hyundai Mobis Tokyo Branch, is being interviewed on the 25th at Tokyo Big Sight, Japan, meeting with the Korea Automobile Journalists Association. Hyundai Mobis was the only Korean company to participate in the Japan Mobility Show 2023, which started with a pre-press event on the same day.
[Photo by Korea Automobile Journalists Association]

The primary role of Hyundai Mobis's Japan branch is to increase customers such as Japanese complete vehicle companies and to understand local industry trends. Although the response to electrification has been somewhat delayed, Japanese vehicles still sell well worldwide. Hatori said, "The annual production volume of Japanese complete vehicle companies is about 24 million units, accounting for about 30% of the global market. Supplying to Japanese complete vehicle companies means not only increasing sales within Japan but also increasing sales on a global scale."

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