More Investment Planned in China to Meet Growing Needs
Hyundai Mobis, the largest auto parts maker in South Korea, seeks to expand module production in China through various promotional activities at the Auto Shanghai 2005, the largest auto show in China.
The firm set up booths along with some 800 auto-related firms for the motor show to display various module products, airbags, new self-developed braking systems and other key auto parts technologies.
Chinese buyers have expressed keen interest in the module systems and various safety features for Hyundai Motor’s Sonata sedan and its compact models, which are gaining solid popularity in the world’s fastest growing auto market. Mobis provides key parts for Hyundai Motor and Kia Motors, which control a combined 70 percent of market in South Korea.
Mobis has kept a close eye on the motor show in Shanghai to showcase various technological achievements it has made to localize various auto parts technologies. The firm has paid special attention on the promotion of its module systems and other value-added products, with which it plans to make inroads into the Chinese market.
Mobis has an ambitious plan to emerge as one of the top players in the Chinese auto parts industry, riding on surging popularity of Korean cars.
Mobis officials said the firm will double annual production capacity of its plant in Beijing to provide parts for some 300,000 cars. It also seeks to establish more plants in the market in the near future to meet growing needs for Hyundai and Kia cars.
The company has set up seven joint ventures in China, including the plant in Beijing. It plans to increase investment in China to improve sales and logistics network and enhance consumer satisfaction.
The auto show was also a good opportunity for it to witness the latest trend of the industry and to consolidate partnerships with leading auto technology firms.
Mobis is enjoying growing orders for key parts from a number of auto manufacturers in the world. Last year, the firm signed a 180-billion-won contract with the Daimler Chrysler to provide the complete sassy modules, the largest single contract ever signed by a South Korean auto parts maker.
It is also giving final touches to the plant in Montgomery in Alabama, which is scheduled to open next month. The plant will produce modules for Hyundai Motor in the United States.
During the motor show in Shanghai, Mobis displayed the whole lineup of products, including modules and a number of safety and convenience features. In particular, airbag systems, anti-lock brake systems (ABS), electronic stability programs (ESP) and car audio and AV systems received enthusiastic responses from participants.