MOBIS expands its business in the emerging “Indian market”
Hyundai MOBIS 2012/03/22프린트
Hyundai MOBIS 2012/03/22프린트
- Complete a global sales network, following North America, Europe, Japan and China
- Expanding Chinese and Indian market as well as the leading markets
- Increasing overall export sales up to 20% by 2020
MOBIS has focused on automobile part exports to international automakers including GM, Chrysler in North America, and BMW, Volkswagen, and Mercedes in Europe. MOBIS is now promoting export market diversification by strengthening its presence in the emerging markets of China and India through a Two-Track export strategy.
On March 19th, MOBIS (www.mobis.co.kr) announced that the company opens a local branch in India which would be responsible for auto-part orders from local car manufacturers in Delhi, India, the rising star of the growing automobile industry. MOBIS, which has local branches in North America (Detroit), Europe (Germany), Japan (Tokyo) and China (Shanghai), has established an exclusive global sales network in leading and emerging markets following the opening of a local branch in India.
This local branch in India is a part of the company’s strategy to increase the company’s presence in emerging markets through its competitive edge, which achieved recognition in the global market as the company’s strategy for expanding exports in leading markets got onto the right track. The company plans to leverage this competitiveness to become a leading international firm through diversification, securing customers in emerging markets including China and India and accelerating auto-part exports in leading markets.
The 1.2 billion populations are the emerging customers as well as market producers, alongside the people in China. The Indian car market in particular has experienced over 16% growth annually, mainly with compact cars, and international firms continue to enter the Indian market following projections that car sales will exceed 5 million units by 2015.
MOBIS plans to greatly reinforce business activity in China and India to secure customers in these emerging markets. The company plans to gradually expand sales offices in China to other regions by next year while carrying out business to obtain component orders primarily with the local Indian branch.
MOBIS has completed a detailed analysis of the Indian market and its competitors and established a business strategy targeting the Indian market with safety systems including airbags, and automotive systems including audio as strategic company products. The airbag market is expected to grow 37% annually in India, as the Indian government enforces tougher measures to install airbags in India’s ten major cities commencing this year. As local auto manufacturers demand high quality audio systems, the market is expected to grow 19% annually.
Lee Jun Hyung, vice president of MOBIS International Business Department said “the company will develop these strategic products tailored to the Indian market in cooperation with a research institute in Hyderabad, India, while reinforcing price competitiveness through design improvement and on-site development of major components, and promoting aggressive business activities”. “We will continue tailor our product portfolio to the local market with these strategic products in the lead,” he added.
Together with Hyundai Motors, MOBIS is targeting Marutisuzuki, Tatamotors and M&amp;amp;amp;amp;amp;M, India’s three major companies accounting for more than 60% of the Indian market. The company has established a branch office in Delhi for best access to these companies and best use of existing R&amp;amp;amp;amp;amp;D personnel. MOBIS will hold a briefing session for auto manufacturers in November with additional Indian market analysis and preliminary business activities.
MOBIS has expanded exports to overseas car manufacturers to 10% of overall sales by increasing major auto-part exports to leading car manufacturers in North America and Europe. The company now aspires to be one of the global top 5 leading companies in the car component industry by expanding its share to 20% of the market by 2020 through a strategy of diversification across leading and emerging markets.