Hyundai Mo­bis boosts lo­cal­iza­tion in China

The Korea Times - - BUSINESS - By Kwak Yeon-soo [email protected]­re­atimes.co.kr

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.

Cour­tesy of Hyundai Mo­bis

Vis­i­tors learn about Hyundai Mo­bis’ auto parts tech­nol­ogy at the China In­ter­na­tional Im­port Ex­port (CIIE) held in Shang­hai, Thurs­day.

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