Hyundai Mobis has unveiled an ambitious growth strategy, aiming to capture 40% of the global original equipment (OE) auto components market by 2033, up from its current 10% share. The announcement, made during the 2024 CEO Investor Day in Seoul, underscores the company’s commitment to transforming its business model, driving profitability, and advancing sustainable mobility solutions.
Strategic Growth Targets
President and CEO Lee Gyusuk outlined Hyundai Mobis’s roadmap, including a goal of 8% annual revenue growth and an operating margin of 5-6% by 2027. The company also aims to deliver a Total Shareholder Return (TSR) exceeding 30%, reflecting its focus on balanced shareholder policies.
Recent investments in high-value core components have bolstered Hyundai Mobis’s revenue, positioning the company to recover costs and enhance profitability. With aspirations to join the top three global automotive suppliers, Hyundai Mobis plans to lead in advanced mobility solutions.
Hyundai Mobis is prioritizing Software-Driven Vehicles (SDVs) and electrification to strengthen its competitive edge. Key initiatives include:
- Extended Range Electric Vehicles (EREVs): Mass production slated for late 2026.
- Electric Powertrain (e-PT) Systems: Expanded lineup tailored for small and large EVs in markets like Europe and India.
- Battery Systems: Focus on stability and securing high-value contracts with premium automakers.
In the electronics segment, Hyundai Mobis is developing integrated control platforms and infotainment systems to meet SDV demands. For chassis and safety, investments in electronic braking systems (EMB) and steer-by-wire (SBW) technologies aim to achieve a 10% global market share by 2030.
The company will divide its operations into growth areas, such as electrification and electronics, and stabilization areas, including modules, chassis, safety, lamps, and service components. Growth areas will focus on innovation and market expansion, while stabilization areas will prioritize profitability enhancement.
Hyundai Mobis reaffirmed its dedication to environmental, social, and governance (ESG) principles, setting a target for carbon neutrality across its supply chain by 2045. Key sustainability goals include:
- Achieving a 35% renewable energy transition rate by 2025.
- Conducting sustainability audits for 100% of production sites by 2027.
These measures align with Hyundai Mobis’s vision of responsible innovation and clean mobility leadership in the evolving automotive sector.
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