Hyundai Mobis boosts localization in China
Hyundai Mobis has unveiled a batch of strategies to bolster localization in China with an aim to supply auto parts to major global automakers operating there, the company said at the China International Import Export (CIIE) held in Shanghai, Thursday.
The nation’s biggest auto parts supplier said it will localize all stages of management — from business planning and research and development (R&D) to production and quality control — to gain a competitive edge in producing high value-added auto parts.
“Developing tailored products to meet a variety of needs of customers has become an essential part of our business amid intensifying competition and stagnant sales growth in the vehicle market in China,” a Hyundai Mobis official said.
The five major localization strategies include developing core auto parts technologies, strengthening cost competitiveness, establishing a local procurement system, subdividing sales strategy and promoting technological innovation.
The announcement comes after the company won contracts worth $730 million in China last year. The figure is expected to exceed $800 billion in 2020, the firm said.
In a series of moves, Hyundai Mobis will improve its ties with local partners through research, production and marketing cooperation. It will also participate in tech shows such as CES Asia and CIIE to promote the company’s innovative technologies.
“We will analyze customer preferences and increase orders by developing technologies and products that guarantee best performance and safety,” the official said.
Meanwhile, the company has been pushing to become one of the global top five auto parts makers by 2020.
Since the company set up its Chinese headquarters in Beijing in 2012, the local branch has been in charge of directing the production of key car parts including modules.
Likewise, it has been overseeing almost all phases of operations ranging from personnel, production, marketing, and other regional affairs.
The auto parts supplier currently has seven local subsidiaries in China, including three in the Shanghai area, three in Beijing and one in Tianjin.
Earlier in June, Hyundai Mobis launched an open innovation center in China to discover and invest in promising startups in fields like artificial intelligence, self-driving cars and big data.
Visitors learn about Hyundai Mobis’ auto parts technology at the China International Import Export (CIIE) held in Shanghai, Thursday.