Signs a contract to supply brake components worth US$40 million for the Lybra model of Chinese automaker Changsha Zhongtai Motors
- Plans to break the US$200 million mark this year in key parts contracts for the Chinese market
Hyundai Mobis (www.mobis.co.kr), the nation's biggest auto parts maker, said that the company recently signed a US$40 million auto part supply contract with Chinese automaker Changsha Zongtai Motors and has started preparations for the parts supply.
According to the contract, Hyundai Mobis will supply brake components to equip 200,000 units of the Lybra model produced by Changsha Zhongtai Motors for five years starting from 2009. The components will be produced by Wuxi Mobis, the company's local unit.
The deal allowed Hyundai Mobis to achieve a landmark US$160million in total contracts for core components in China since 2006. The company revealed its intention to break the US$200 million mark within this year by actively pursuing supply contracts on safety components, such as air bags, in addition to brake parts.
Hyundai Mobis is making concentrated efforts to make inroads into the Chinese market, as it believes that the company can survive the global market only when it penetrates the Chinese market which is considered to be one of the world's three largest automobile markets, along with Europe and North America.
Yim Chae-young, vice president and module business head of Hyundai Mobis, said, "This contract has provided us more opportunities to supply our core parts to overseas automakers." He displayed strong confidence, adding, "We plan to expand our business to provide key parts to top-tier global automakers with production bases in China, while advancing further into North American and European markets."
Since 2000 when it was transformed into a company specializing in auto parts, Hyundai Mobis has participated in renowned motor shows and hosted numerous auto parts exhibitions in the United States, Japan, Europe and China, vigorously pioneering overseas markets.
In an IR session held in February this year, Hyundai Mobis announced that it would accelerate the export of core parts related to brake and safety systems through vigorous marketing activities based on the quality and price competitiveness of its products, and will significantly raise the core parts supply ratio to automakers other than Hyundai Motor and Kia Motors by 2015.
Meanwhile, Changsha Zhongtai Motors is a new automaker established in 2007 in a joint partnership between Jiangnan Machinery Group and Zhongtai Holding Company. Located in Hunan Province, the automaker is planning to launch Multipla and Lybra, local editions of Fiat, in November 2008.