Hyundai Mobis Co., Ltd. Business Report FY ended Dec. 2012

Business Highlights

Highlights in FY2012 (FY ended Dec. 31, 2012)

Financial Overview (Consolidated)

(in billions of won)
FY ended Dec. 31, 2012 FY ended Dec. 31, 2011 Rate of
change (%)
Sales 30,789.0 26,294.5 17.1 Sales at the Module Division stood at 29,200.9 billion won, which accounted for 94.8 percent of the Company's overall revenue.

-Percentage of sales by customer (Module Division) 
Hyundai Motor : 28.6%
Kia Motors : 23.7%
Beijing Hyundai  : 14.3%
Total : 66.6%
Operating income 2,906.3 2,637.2 10.2 -
Net income 3,542.0 3,026.8 17.0 -


-In September 2012, the Company has been awarded a new contract from General Motors to supply Integrated Center Stacks (ICSs), switch panel products. The agreement is worth approximately 160 million yuan in sales. The ICSs are designed to control various multimedia technologies. This is the fourth time for the Company to win an ICS program from the U.S. automaker. (From a press release, September 17, 2012)

-In February 2012, the Company was awarded program business to supply Integrated Center Stacks (ICSs) to General Motors and LED rear lamps to Chrysler. The total revenue from both of these programs is expected to reach 1.07 billion US dollars. (From a press release on February 1, 2012)

Overseas facilities

-In March 2013 the Company's Turkish subsidiary, which was established in February 2012, is planning to complete its module production facility. The subsidiary broke ground at the plant site in July 2012. (From a press release, December 1, 2012)

-In December 2012, the Company's new production facility in Slovakia has been completed. Operations at the new plant will include processing, plating and assembling of conventional brake systems (CBSs), which include brake calipers, drum brakes, master cylinders & brake boosters, and parking brakes. The company is investing approximately 50 billion won in this project to ensure the capacity to produce brakes for some 600,000 vehicles a year. CBS components will be produced at Hyundai Mobis' Changwon plant and transferred to the company's new Czech Plant as well as its Slovakian Plant for complete knockdown production. The finished products will be supplied to Hyundai and Kia Motors' local facilities. (From a press release, December 18, 2012)

-In September 2012, Mobis Brasil Fabricacao de Auto Pecas Ltda. commenced mass-production of module products of chassis, cockpit and bumper. These modules are supplied to Hyundai Motor's Brazilian facility, which is assembling the CUV HB20 5-door hatchback (From a press release, December 1, 2012)

-In June 2012, Beijing Hyundai Mobis Automotive Parts had launched production operations at its Plant No.3. The new factory produces front-end modules, chassis modules and cockpit modules for the Avante HD and the Avante MD built by Beijing Hyundai Motor. (From a press release, December 1, 2012)


-In December 2012, the Company acquired the ISO26262 standards for its Smart Cruise Control (SCC) system and the Lane Keeping Assist System (LKAS). No other Korean automaker or parts supplier has ever obtained this international functional safety standard for automotive electronic safety-related systems. During 2013, Hyundai Mobis is going to promote activities to acquire the ISO26262 in the fields of airbag control units and other three safety technologies. Further, by 2014, the company plans to obtain the certification for all fields of mechatronics products. (From a press release, December 10, 2012)


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)
FY ended Dec. 31, 2012 FY ended Dec. 31, 2011 FY ended Dec. 31, 2010
Amount 357,863 326,108 266,160
% of sales 1.2% 1.2% 1.2%

R&D Structure

-In August 2012, the Company announced that it is expanding its open R&D initiatives by holding a technical forum and a CTO conference with Mobis partners' chief technology officers. The purpose of the technical forum joined by the nation's leading professors is to respond to the latest trends in advanced technology and seek out an advisory group in regards to pending issues, while also activating technical exchanges between industry and academia. The CTO conference is designed to share the company's R&D roadmap with partner companies and carry out discussions on future development projects. (From a press release, August 16, 2012)

-In March 2012, the Company announced that it has opened a new sales office in the Indian city of Delhi, aiming to expand sales of its products, especially airbags and audio products. The company's Hyderabad R&D center in India will cooperate with the new sales office in order to develop products, which satisfy local demand. Hyundai Mobis also plans to increase its price competitiveness by developing main components locally in India. (From a press release on March 20, 2012)

R&D Activities

-In June 2012, the Company developed integrated image/video recognition software for automotive use. The software is designed for lane-departure warning systems, frontal collision warning systems, and high-beam assist systems. The Company has invested 5 billion won into this development project. (From a June 29, 2012 press release)

-In April 2012, the Company succeeded in developing a full adaptive front lighting system (Full AFLS) using LED and a high-beam assist system, becoming the first company to do so in Korea. The Full AFLS automatically adjusts the angle and brightness of lamps according to various driving conditions. The high-beam assist technology automatically switches between high and low beams without the need for a driver's manual operation. These products will be installed on Kia's K9 large sedan. (From a press release on April 6, 2012)

Investment Activities

Capital Expenditure

(in millions of won, in thousands of USD)
Planned amount of investment Amount
466,816 425,889
426,683 396,989
Total 908,597 870,914

Establishment of New Factories

-In December 2012, the Company said it would construct a new plant in Chungju City, Chungcheongbuk-do. The facility, which is scheduled to be completed in 2014, will produce components for use in environmentally friendly vehicles. The new facility will be located on the premises of HL Green Power in Chungju, which is Hyundai Mobis' vehicle battery joint venture with LG Chem. Hyundai Mobis already acquired the new plant site in October 2012. (From a press release, December 18, 2012)

-In June 2012, the Company's subsidiary, HL Green Power, will build a new production facility in Korean to produce automotive battery packs. The facility, which will have an annual production capacity of 100,000 units, is being built on land that was acquired for 27,000 million won. The Company is investing 7,500 million won in the project on facilities and equipment. (From a June 29, 2012 press release)

-In March 2012, the Company announced that it will set up a new manufacturing plant at the Jingok Industrial Complex in Gwangju Metropolitan City. The new facility will produce cockpit modules and front-end modules with a total investment of approximately 30 billion won. The construction work will begin in June 2012 and is scheduled to be completed in December the same year.  (From a press release on March 8, 2012)