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Hyundai Mobis' mobility concept car M.VISION S (Courtesy of Hyundai Motor Group) Hyundai Mobis Co., South Korea’s largest auto parts producer, expected orders from global carmakers excluding Hyundai Motor Group’s affiliates to rise 50% this year, saying its continuous investments in future technology attract more customers.Hyundai Mobis, a car parts manufacturer within the conglomerate, said on Tuesday it expected orders from the world carmakers except for the group’s automobile producers -- Hyundai Motor Co. and Kia Corp. -- to increase to some $3.8 billion in 2022.“We are expected to secure a major carmaker in Europe as a new customer and win orders for the next-generation displays, infotainment, safety components and other new products,” it said in a statement.Hyundai Mobis has been improving competitiveness in automobile electrification technology, investing more than 1 trillion won ($778 million) every year. The company plans to spend 1.3 trillion won on R&D this year after the investment topped the 1 trillion won mark in 2020 for the first time.THE WORLD’S No. 6 PARTS SUPPLIERHyundai Mobis rose to the world’s sixth-largest car parts supplier from No. 7 this year in terms of sales with a total global original equipment manufacturer (OEM) automotive parts revenue of $29.1 billion in 2021 on a list compiled by Automotive News, a renowned auto industry newspaper.The company had been the seventh-biggest maker on the 100 parts and material companies ranking since 2017.Global orders, especially ones for electrification and core automobile components, sharply increased last year, Hyundai Mobis said.Other South Korean parts makers such as Hyundai Transys Inc. and Hyundai Wia Corp. raised their rankings on the list. SK On Co., the world’s fifth-largest electric vehicle battery maker, ranked No. 68, entering the Automotive News list for the first time.TOUGH ROAD AHEADDespite the strong performance, the outlook of global auto parts makers, especially smaller ones, deteriorated, given the global supply chain disruption and surging commodity prices, industry sources said.“It becomes clear that suppliers are still bearing the brunt of increased material costs and supply-chain shortages since at least last year, even as sales grew,” Automotive News said.Smaller companies that focus on components for internal combustion engine vehicles are likely to be hit harder as their price bargaining power is weaker than major players and demand for legacy cars is weakening, the sources said.“The government provides financial support for the development of parts for future vehicles, but many are struggling to rob Peter to pay Paul,” said a source at a small South Korean auto parts maker.By Hyung-Kyu Kimkhk@hankyung.comJongwoo Cheon edited this article.
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