- As the first Korean business in China to obtain national certification, Hyundai Mobis expects to save up to 50% in time and over 30% in costs relating to certifications - Hyundai Mobis now conducts self-certification for a total of 12 categories, shortening significantly the time required in developing auto parts technology
Hyundai Mobis is expected to gain speed in its penetration of the Chinese market, as self-administered performance tests at its Shanghai technical test center will have the same effectiveness as tests performed by the Chinese national certification authority.
Hyundai Mobis’ Shanghai technical test center is responsible for scrutinizing the performance of auto parts that are produced and distributed locally in China. Recently, the technical center announced that the Certification and Accreditation Administration of the People’s Republic of China granted the center a national certification for testing of auto parts, including facility and equipment and operation systems, pertaining to 12 categories, including safety, materials, environment, and so on.
The certification came after one and a half years of strict evaluation in technical testing capabilities, operation system, testing administration, and so forth. The Certification and Accreditation Administration only grants the certification to businesses that have testing facilities and technical skills that are same or superior to those of the Chinese national organizations.
Hyundai Mobis is the first Korean business in China to obtain the certification. There is no doubt that the certification standards are tough, as only 20 Chinese automobile businesses (Shanghai TRW and Yanfeng Visteon, among others) have succeeded in obtaining the certification.
From now on, Hyundai Mobis will be able to gain official certification through self-tests of its auto parts either produced in China or imported from elsewhere. That could cut by half the time (up to four months) that was consumed in obtaining certifications, and reduce by up to 30% the costs involved in the process.
There are more benefits. Hyundai Mobis will be able to speed up technology developments for auto parts distributed in China with faster and more efficient tests and certifications. Moreover, additional sales of up to USD 1.5 million per year could be expected as Korean companies in China and Chinese local businesses increasingly rely on Hyundai Mobis for technical tests.
At the same time, Hyundai Mobis is likely to gain momentum in penetrating the Chinese market by stepping up marketing and sales of its module products, braking systems, airbags, and so forth vis- and agrave;-vis local Chinese businesses or Chinese joint venture firms.
The designation of Hyundai Mobis as an official certification business has spill-over effects. Beijing Hyundai and Dongfeng Yueda Kia Motors will be able to gain a competitive edge with Hyundai Mobis auto parts, and Korean small-medium enterprises operating in China could take advantage of the high quality testing environment for their products and gain an edge in doing business in the local market.
In 2003, the Shanghai technical test center was set up and equipped with over 150 top quality equipment for testing materials, performance and environmental impact, durability, airbags, and so forth. Since then, the center has been fully responsible for testing the modules and core parts locally produced by Hyundai Mobis. The auto parts producer has also been demonstrating global collaboration and support between large businesses and small-medium businesses by providing testing equipment to SME auto parts producers with poor testing facilities.
Shanghai technical test center is not stopping here. The center intends to carry this momentum further to expand test equipment and secure highly qualified workforce. The ultimate goals is to add more certification categories to the current 12, and secure a bridgehead for technological skills required to penetrate the Chinese market.
<TERMINOLOGY> Certification and Accreditation Administration of the PRC: A national certification organization established pursuant to the provisions of the Certification and Accreditation Treaty of the People’s Republic of China. With its headquarters in Beijing, the organization is in charge of matters relating to testing and measurements for various industries, including the automobile, electronics, and construction industry. Key responsibilities include certification of management systems, management of certifications, enactment of rules and regulations relating to tests, and inspection of national testing capabilities.