Hyundai Mobis Co.’s third-quarter profit rose 32% as strong performance in its after-sales division helped counter weakening electric vehicle sales amid global market uncertainties.
Operating profit climbed to 909 billion won ($680 million) from 690 billion won a year earlier, the South Korean auto parts maker said. Revenue fell 1.6% to 14 trillion won, primarily due to declining EV component sales and changes in battery procurement methods.
The company’s electrification business saw revenue plunge 42% to 1.58 trillion won after Hyundai Motor Group switched to direct battery cell purchases for new models. Excluding the accounting change, EV sales were impacted by slower adoption in key markets and battery price declines.
After-sales service remained the bright spot, with operating profit rising 21% to 816 billion won. The division’s operating margin expanded to 26.7%, highlighting its role as a key profit center.
The parts maker maintained growth in overseas markets, with European sales rising 10% despite regional economic challenges. North American revenue increased 9.7% while China operations showed signs of recovery with a return to profitability.
Research and development spending is set to reach 1.75 trillion won this year as the company focuses on new technologies amid intensifying competition in the automotive supply chain.
The results come as Hyundai Mobis seeks to expand its non-captive customer base beyond its primary clientele of Hyundai Motor Co. and Kia Corp.
