Hyundai Mobis Co. delivered a robust second-quarter performance, with operating profit climbing 36.8% to 870 billion won ($670 million) as the South Korean auto parts manufacturer capitalized on demand for premium electronic components and electrification technologies.
Revenue at the Hyundai Motor Co. affiliate rose 8.7% to 15.94 trillion won for the three months ended June, according to a regulatory filing Friday. The results underscore the company’s successful pivot toward higher-value products as traditional automotive suppliers grapple with shifting market dynamics.
The performance comes as the global automotive industry faces mounting challenges from trade tensions and a cooling electric vehicle market. U.S.-China trade disputes have escalated tariffs on automotive components to as high as 245%, while net profit at the parts supplier declined 6.3% to 934.4 billion won due to reduced equity gains from affiliates.
Hyundai Mobis credited its performance to product mix improvement, driven by the full-scale operation of its electrification plant in the U.S. and the expanded supply of high-value electronic modules. A weaker won against the dollar also boosted overseas revenue when converted back to the local currency.
The company secured $2.12 billion in orders from global clients excluding Hyundai Motor and Kia Corp. in the first half, achieving 30% of its annual target of $7.45 billion. This diversification effort represents a strategic shift as Hyundai Mobis aims to reduce its dependence on affiliated companies, which currently generate 90% of its parts sales.
Looking ahead, the company plans to increase the share of overseas parts sales from 10% to 40% by 2033, while rewarding shareholders with a 50% dividend increase to 1,500 won per share and a 110 billion won share buyback program.
