Hyundai Mobis Sets Ambitious Goals for Growth and Innovation

Hyundai Mobis Sets Ambitious Goals for Future Growth

Hyundai Mobis is embarking on a transformative journey designed to enhance its business structure and boost profitability. The company's commitment is exemplified during its recent CEO Investor Day, where it revealed its ambitious targets, including an average annual revenue growth of 8% and an operating margin of 5~6% by 2027. This proactive approach aims to elevate Hyundai Mobis's position in the global automotive supply chain.

Driving Operational Excellence and Shareholder Value

Hyundai Mobis's strategy focuses on improving its operational framework to bolster shareholder returns significantly. With a stated goal of reaching a 40% share of global original equipment (OE) sales in auto component manufacturing by 2033, the company is laying the groundwork for sustainable growth. Aiming for a Total Shareholder Return (TSR) exceeding 30%, Hyundai Mobis seeks to achieve this by balancing increased sales with profitability while also reacting responsively to changing market dynamics.

Enhancing Technological Competitiveness

At the foundation of Hyundai Mobis’s vision is a focused effort to secure technological leadership, particularly in the realm of Software-Driven Vehicles (SDVs). The company is intent on streamlining its product offerings in electrification, investing in advanced solutions such as Extended Range Electric Vehicles (EREVs) and Economical Electric Powertrain (e-PT) systems. Current projects aim to finalize designs by the close of 2026, showcasing Hyundai Mobis's dedication to advancing electric mobility.

Innovative Product Development and Market Leadership

In its pursuit of a 10% global market share in the chassis safety sector by 2030, Hyundai Mobis is enhancing its product line with advanced electronic braking systems (EMB) and steer-by-wire (SBW) technology. This transition from mechanical to digital serves as a strategic move toward modernization, setting Hyundai Mobis apart as a leader in next-generation automotive solutions.

Commitment to ESG and Carbon Neutrality

Hyundai Mobis is not only focused on financial growth but is also committed to environmental, social, and governance (ESG) initiatives. The company is targeting a 35% renewable energy usage rate by 2025 while striving for full sustainability audit coverage of its manufacturing sites by 2027. Through these efforts, Hyundai Mobis aims to drive innovation hand-in-hand with responsible environmental stewardship.

Future Directions and Strategic Partnerships

In addition to its internal targets, Hyundai Mobis recognizes the importance of partnerships in driving innovation and efficiency. By collaborating with key industry players, the company intends to strengthen its product offerings and market presence across segments. This approach will allow Hyundai Mobis to cultivate a more versatile and resilient business model, essential for thriving in the dynamic automotive landscape.

Fostering Communication and Stakeholder Engagement

Hyundai Mobis is dedicated to enhancing transparency and stakeholder engagement. By disclosing external evaluations related to its board management, the company seeks to build trust and facilitate better communication with all parties involved in its growth journey. This commitment is part of its broader strategy to create a collaborative and innovative corporate environment.

Frequently Asked Questions

What is Hyundai Mobis's main goal for 2027?

Hyundai Mobis aims for an 8% average annual revenue growth and an operating margin of 5~6% by 2027.

How does Hyundai Mobis plan to achieve its TSRO goals?

The company intends to enhance its TSR to more than 30% while simultaneously increasing market share in the automotive component sector.

What innovations are Hyundai Mobis working on?

Hyundai Mobis is developing electric vehicle technologies, including Extended Range Electric Vehicles (EREVs) and electric powertrain systems.

What is the company's stance on ESG initiatives?

Hyundai Mobis is fully committed to ESG management, targeting a 35% renewable energy transition rate by 2025 and full sustainability audits of its manufacturing facilities.

How is Hyundai Mobis building its product offerings?

The company is enhancing its product line through advanced technological solutions, shifting from mechanical to electronic systems in the automotive safety sector.

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