Hyundai Mobis Co., Ltd. Business Report FY ended Dec. 2017

Financial Overview (Consolidated)

(in billions of won)
FY ended Dec. 31, 2017 FY ended Dec. 31, 2016 Rate of
change (%)
Sales 35,144.5 38,261.7 (8.1)
-Sales decreased year-over-year (y/y) though extended model lineup of SUVs and other vehicles in and outside Korea, as well as strong sales of aftermarket products. Operating profit decreased y/y due to considerable costs incurred for new facilities and increased costs for quality control.

-In FY2016, sales of module products reached KRW 31,574.8 billion won, which accounted for 82.5% of the Company's overall revenues.

Operating income 2,024.9 2,904.6 (30.2) -
Net income 1,557.7 3,040.0 (48.7) -

Recent Development in Korea

-The company is going to start mass production and supply of its proprietary brake and autonomous parking solutions. The company has already prepared for the start of the mass production of its next-generation integrated MOBIS Electronic Brake (iMEB) and Remote Smart Parking Assist (RSPA) at the plants in Cheonan and Jincheon in South Korea. The control unit of iMEB combines advanced driver assistance systems (ADASs) such as Front Collision Avoidance (FCA) and Advanced Smart Cruise Control (ASCC), and also Electronic Parking Brake (EPB). RSPA supports automatic speed, steering, and acceleration/deceleration control, and has remote control function based on the use of a smart key. Hyundai Mobis intends to start with the mass production of iMEB and RSPA for green cars and later expand the application to conventional engine-powered vehicles. (From a press release on February 6, 2018)

Recent Development Outside Korea

-The company announced a policy to develop its India R&D Center as a specialized software development center for future vehicles that use technologies like multimedia, driver assistance systems, and autonomous drive systems. The facility was established 10 years ago. In addition to increasing software design capability, the Indian facility aims to shorten development lead-time by working closely with an R&D center in Yongin, Korea. The India R&D Center leads development and inspection of smart cruise control systems, lane keeping assist systems, semi-automatic parking systems, airbag control units, and Mobis Electronic Braking System4 (MEB4). It made a great contribution to the company's obtaining the ISO26262 certification. (From a press release on April 13, 2017)


-The company said that it received a total of Korean won (KRW) 5,300 billion (USD 4.8 billion) worth products in North America and China in 2017. In North America, the company won the orders for chassis modules for pickup trucks, and two electric components, which are disassociated center stack displays (DCSDs) and integrated center stacks (ICSs). In China, it won the orders for external amplifiers for automotive audio equipment, electric parking brakes (EPBs) and rear lamps. (From a press release on September 25, 2017)

R&D Structure

Facility Location
Mabuk 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, 2017 FY ended Dec. 31, 2016 FY ended Dec. 31, 2015
Amount 769,569 696,779 625,788
% of sales 2.2% 1.8% 1.7%

R&D Activities

-The company has developed a bi-directional on-board charger for electric vehicles for the first time in South Korea. The bi-directional onboard charger is necessary to bring Vehicle To Grid (V2G) into reality. The V2G is a system in which plug-in electric vehicles such as electric cars (EV) and plug-in hybrids (PHEV) communicate with the power grid to return unused electricity to the electric distribution network, while parking after a drive. The system allows an electric car to serve as mobile energy storage system (ESS). (From a press release on August 16, 2017)

Product Development

-The company announced that it has successfully developed the world's first panorama sunroof airbag system, which reduces injuries by preventing passengers from being thrown out of the car roof during an accident. The panorama sunroof airbag is installed inside the sunroof, and deployed forward from the rear of the car. It resembles the curtain airbag that is deployed alongside the windows of the vehicle in a broadside collision. If the turning angle of the vehicle is changed due to a rollover accident, the sensor detects it, and the inflator deploys the airbag. Its cushion is inflated by gas and covers the entire roof surface of the vehicle in just 0.08 seconds to protect the passengers. (From a press release on December 29, 2017)

-The company developed autonomous reverse driving technology that autonomously steers a car when the car goes back. The technology stores the data on the speed and travel paths of the car when it moves forward and calculates the speed and travel paths in reverse. The company also has a plan to develop a complete reverse driving technology that supports both starting and braking by adding cameras and radar sensors. (From a press release on November 21, 2017)

Technical Alliance

-The company has successfully developed all-new soft magnetic core domestically with other two Korean manufacturers, Samwha Electronics and Amogreentech. The soft magnetic core is a core material for onboard battery chargers (OBCs) and low voltage dc-to-dc converters (LDCs) of green cars. During the joint initiative, Hyundai Mobis took the lead in development planning, specification setting, material development, and verification of reliability using real vehicles. Samwha Electronic and Amogreentech were in charge of process development and trial production. Since late 2016, Samwha Electronics has been supplying ferrite core with improved energy loss ratio and higher price competitiveness to Hyundai Motor Co., Ltd. for the automaker's five production models including the Sonata Hybrid. On the other hand, Amogreentech successfully developed very price-competitive nanocrystalline ribbon core at the end of 2016 and is now preparing for the launch of the mass production in 2018. (From a press release on November 29, 2017)

Capital Expenditure

(in billions of won)
Projects Purpose of investment FY ended Dec. 31, 2017 FY ending Dec. 31, 2018
New plant construction, complementary investments Facility improvements to improve capacity utilization rates 403.2 577.1
260.3 386.5
Total - - 663.5 963.6

Investment outside Korea

-The company established a new lamp plant in Mosnov, Czech Republic. Mass production has already begun at the new facility. The plant will produce 750,000 headlamps and rear lamps for 750,000 vehicles per year, and supplies them to Hyundai Motor's Czech facility and Kia Motors' Slovak facility. The company is investing approximately KRW 140 billion in the new lamp plant. (From a press release on April 19, 2017)