Hyundai Mobis Co., Ltd. Business Report FY2011

Business Highlights

Highlights in FY2011 (FY ended Dec. 31, 2011)

Financial Overview (Consolidated)

(in billions of won)
FY2011 FY2010 Rate of
Sales 26,294.5 22,143.5 18.7% Sales at the Module Division stood at 20,903.4 billion won, which accounted for 79.5 percent of the Company's overall revenue.

-Percentage of sales by customer (Module Division) 
Hyundai Motor : 38.6%
Kia Motors : 30.1%
Beijing Hyundai  : 17.9%
Total : 86.6%
Operating income 2,674.8 2,507.0 6.7% -
Net income 3,026.8 2,715.2 11.5% -


-Mitsubishi / Subaru
The Company was awarded a contract to supply headlamps, which are worth 200 million USD, to Mitsubishi Motors Corporation. The auto parts company also won a contract to provide Fuji Heavy Industries Ltd. with rear lamps worth 3.3 million USD. Hyundai Mobis will produce these lamps at its Gimcheon plant, Gyeongsangbuk-do, Korea, starting in the latter half of 2011. Headlamps to be supplied to Mitsubishi include halogen, HID and LED lamps. The LED headlamps, which Hyundai Mobis will start supplying in the second half of 2012, were developed through a joint investment with Samsung LED, using Korean domestic technologies only. (From a press release on June 10, 2011)

Business Plan

The Company is looking to triple the ratio of exports from the current level. Its export target for 2011 is set at 1,520 million dollars, which makes up about 10 percent of the company’s overall sales. The plan is to hike the proportion to 30 percent by 2015. (From an article in the Nikkan Jidosha Shimbun on July 8, 2011)


R&D Structure

Facility Location
Yong-in R&D Center Yong-in,
Uiwang R&D Center Uiwang,
Shanghai R&D Center Shanghai,
Detroit R&D Center Detroit,
Frankfurt R&D Center Frankfurt,
India R&D Center Hyderabad,

R&D Expenditure

(in millions of won)
FY2011 FY2010 FY2009
Amount 326,108 266,160 206,130
% of sales 1.24% 1.20% 1.20%

R&D Activities

-Around view monitoring system
The Company became the first company in Korea to successfully develop an around view monitoring system that allows the driver to have a bird's eye view of the car and the surrounding area. The system converts image data taken by four separate cameras, which are located under both side mirrors and both front and back ends, to display an image of the vehicle from above on the monitor. The company is currently supplying the systems to Hyundai Motor's Grandeur with a 3.3-liter GDi engine. (From a press release on August 26, 2011)

-Tire Pressure Monitoring System (TPMS)
The Company succeeded in developing and producing a Tire Pressure Monitoring System (TPMS), becoming the first company to do so in Korea. The TPMS will be installed on the all-new Hyundai Veloster compact sport coupe. When tire pressure goes down to 75 percent or less of an adequate level or the internal temperature of the tire rises to more than 100 degrees centigrade, the system will alert drivers by displaying a warning message on an instrument panel. (From a press release on February 21, 2011)

Technology Alliance

Hyundai Mobis Co., Ltd. of Korea and Takata Corporation of Japan have signed a strategic partnership agreement to develop next-generation safety systems. Their joint projects will include development of an active seatbelt (ASB) system, which will be coupled with other safety technologies, including the adaptive cruise control system and the lane departure warning system, to warn the driver in case of dangerous situations. Hyundai Mobis plans to start supplying the new ASB system to Hyundai and Kia by the end of 2012. (From a press release on November 25, 2011)

Investment Activities

Capital Expenditure

(in millions of won, in thousands of USD)
Planned amount of investment Amount
amount of investment from FY2012 onwards
Module Business

-Mobis Electronik Brake (MEB) plant

39,805 30,606 9,199
-Gimcheon lamp plant 53,187 55,946 -
-HEV business 23,666 2,471 21,195
-Daegu plant 68,000 17,696 50,304
-Gyeongju plant 25,889 34,512 -
-Overseas subsidiaries and affiliates USD 426,869 USD 358,756 USD 76,106
-Others 218,635 179,715 38,920

Establishment of New Factories

The Company broke ground for its new plant in Piracicaba, Brazil in January 2011. The facility, which is expected to be completed in 2012, will manufacture products such as rear chassis modules, cockpit modules and bumpers.

-Korea (HL Green Power)
HL Green Power Co., a joint venture between Hyundai Mobis Co., Ltd. and LG Chem Ltd., will establish a new facility to produce automotive secondary batteries in Nexpolis, Chungcheongbuk-do, Korea. The joint venture plans to invest 150 billion won by 2015. The battery plant will be set up on 110,426 square meters of land which the company will purchase in December 2012. Commercial production is scheduled to start by 2013, with an annual production capacity of 300,000 battery packs. HL Green Power currently has a battery plant in Uiwang, Gyeonggi Province. (From a press release on October 4, 2011)