- Begins preparations for mass production of hybrid vehicle electric motors and integrated package modules (IPM) - Plans to invest over KRW 100 billion by 2012 in core parts that account for up to 80% of the exclusive parts for hybrid vehicles - Hyundai Kia Automotive Company expects to made headway in technology, quality enhancements, and localization of core parts through its leading affiliates
Hyundai Mobis is ready to fully enter into the business of supplying key parts for hybrid vehicles, which are anticipated to become a core segment of the future automotive industry.
On the 27th, Hyundai Mobis declared that the parts maker began preparations for mass production of the electric motors and the integrated package modules (IPM) for hybrid vehicles.
Making the auto parts arm of the group fully responsible for supplying the core parts of hybrid vehicles was a strategic decision reached by Hyundai at the group level in order to gain headway in global competition for hybrid vehicle parts. With the leading auto parts affiliate within the group localizing the core parts for hybrid vehicles, securing cutting-edge technology and raising quality competitiveness, Hyundai Kia Automotive Group is expected to gain a boost in competing for environmentally-friendly vehicles.
Hyundai Mobis intends to center its business on electric motors and IPMs, which constitute key parts in hybrid vehicles. In hybrid vehicles, electric motors are the equivalents of the engines in conventional vehicles, and the IPM performs an integrated role that includes not only electric motor and battery control functions, but also converting the battery voltage to a low voltage. Together, the electric motor and the IPM are critical components that enable up to 80% of the hybrid function.
Further, they are common parts whose applications will stretch beyond hybrid vehicles. Down the road, they will be fitted into future environmentally-friendly vehicles, such as Plug-in Hybrid Electric Vehicles (PHEV) and Fuel Cell Electric Vehicles (FCEV). Automakers around the world are racing to develop technologies for PHEV and FCEV; hence, Hyundai Mobis’ advancement into the hybrid vehicle key parts business provides the company with a significant future growth engine.
In line with the rising call for environmental protection, finished auto manufacturers around the world are engaging in cutthroat competition to develop “low-carbon green cars,” often with the support of national governments. In Korea, Hyundai and Kia plan to propel the development of hybrid vehicles in conjunction with Hyundai Mobis. Beginning next year, hybrid versions of the Avante LPI and Forte models will be rolled out. Subsequently, mass productions of hybrid versions of the Sonata and the Lotze models will begin in 2010 and 2011, respectively. At the same time, Hyundai is beginning preparations for mass production of plug-in hybrid vehicles by 2013.
To that end, by 2012, Hyundai Mobis plans to invest over KRW 100 billion exclusively in the development of hybrid vehicle parts. The auto parts producer also intends to increase the number of hybrid vehicle parts research and development staff to 200 from the current 60.
Beginning in December, Hyundai Mobis will begin pilot production of the parts that will be supplied to the Avante LPI hybrid vehicles. By May next year, the company foresees mass productions. Moreover, in order to ensure uninterrupted supply of the key parts for hybrid vehicles, Hyundai Mobis also plans to build an additional large plant exclusively for hybrid vehicle parts production prior to 2010, when mass production of the Sonata hybrids are expected to begin.
As the demand for hybrid vehicles grows and accelerates, the relevant markets are also expanding. Experts predict that the world market for hybrid vehicles will grow from the current 500,000 to 14 million by 2020.
▲ Electric Motor: key component in hybrid vehicles that feeds power to the vehicle from the batteries.
▲ Integrated Package Module (IPM): an integrated package module composed of inverters, converters, batteries, transducers, and so forth.
▲ Hybrid Electric Vehicle (HEV): combines electric motor and petroleum fuel engine to reduce emissions and achieve better fuel efficiency.
▲ Plug-in Hybrid Electric Vehicle (PHEV): a hybrid vehicle with batteries that can be recharged by connecting a plug to a power source.
▲ Fuel Cell Electric Vehicle (FCEV): an electric vehicle powered by fuel cells that produce electricity by using hydrogen and oxygen.