Hyundai Mobis to supply parking cameras to U.S. Stellantis

[Photo by Yonhap]

South Korea’s Hyundai Mobis Co. has secured a deal to supply parking cameras to Stellantis Group, the world’s fourth-largest carmaker.

According to industry sources on Wednesday, Hyundai Mobis finalized a contract to supply 3.5 million parking cameras to Stellantis Group. The exact value of the deal has not been disclosed but it is estimated to be about 100 billion won ($75 million).

Stellantis Group, a major global automaker, owns several brands including Chrysler, Peugeot, Fiat, and Citroën.

Hyundai Mobis will be providing key camera components and solutions that enable smart parking, incorporating advanced camera technology and sensors to assist drivers with easier parking maneuvers.

The parking solutions from Hyundai Mobis merge ultrasonic sensors with surround view monitor (SVM) cameras to accurately gauge vehicle positioning.

This innovative approach allows the implementation of next-generation smart parking systems without the need for expensive radar or LiDAR sensors.

The latest contract is expected to broaden the supply of Hyundai Mobis’ parking cameras and solutions to various brands within the Stellantis Group.

Hyundai Mobis, a primary supplier under the Hyundai Motor Group, has recently focused on increasing non-captive orders, or orders outside the group automotive business.

Currently, sales to Hyundai Motor Co. and Kia Corp. account for about 80 percent of Hyundai Mobis’ revenue.

The company aims to increase its sales from outside the Hyundai Motor Group from the current 20 percent to 40 percent by 2030. This requires enhancing its autonomy as a global auto parts company, hence the drive to secure more orders from global automakers.

Hyundai Mobis’ aggressive pursuit of the global market began last year, highlighted by a contract with Volkswagen to supply battery systems (BSA), a key component for electrification.

Although the exact size of the order was not disclosed, it was known to be worth billions of won. This was the first time Hyundai Mobis secured an order of this magnitude for electrification components from a global automotive group outside Hyundai Motor and Kia.

While multi-billion won orders do not immediately reflect in the same year’s sales, the accumulation of such external orders is expected to significantly increase the proportion of global external sales within a few years.

In 2022, Hyundai Mobis also signed a contract to supply chassis modules for full electric vehicle models to Mercedes-Benz, showcasing the growth of its core component business.

Hyundai Mobis’ operations are divided into traditional vehicle modules and core components, with the latter—including chassis, brakes, steering, electrification and battery management systems, and electronics—showing higher profitability and growth potential. According to Hyundai Mobis’ financial results, orders for core components last year amounted to 12.49 trillion won, nearly doubling from the previous year.