Global carmakers soon might use Hyundai Mobis' EV tech, previously used only in Hyundai and Kia EVs.

Hyundai Mobis, which is a subsidiary and main parts supplier to the Hyundai Motor Group (Hyundai, Kia and Genesis), is going to supply manufacturers of electrified vehicles, outside the Hyundai Motor Group.

According to an exclusive Reuters' article, Hyundai Mobis is seeking its own way to expand the business, as its manufacturing capacity is now exceeding the demand from Hyundai and Kia.

The company is talking with two global carmakers and expects to strike the first deal later this year.

The obvious benefit of the partnership to be effect of scale and lower prices of the EV components, which will allow to produce more affordable EVs.

"“We were not able to supply to other companies because we were busy with keeping up with Hyundai’s growth. Now this has changed,” said Ahn Byung-ki, senior vice president of electric powertrain business at Hyundai Mobis.

“If we increase outside sales, overall prices will drop. This will benefit everyone - us, global companies and Hyundai,” said Ahn, who previously developed eco-friendly cars at Hyundai Motor."

There is no word on who might be the customer of Hyundai Mobis' EV tech, but it's reasonable to exclude all the OEMs that already have their own EV platforms developed, like the Volkswagen Group.

A separate thing is that the overall automotive market declined significantly, and Hyundai Motor Group also noted a decrease in sales over the past few years. Searching for diversification is then a survival strategy in general, even before taking the EV segment into account.

Source: Reuters