The thermal management system, which affects the driving range and charging speed of electric vehicles, is becoming a new growth area for the automotive parts industry. As the transition to electrification accelerates, competition to dominate the thermal management parts market is intensifying.
According to industry sources, Hyundai Wia has signed a supply contract for a thermal management system for Kia's upcoming purpose-built vehicle (PBV) PV7, expanding its previous supply for the PV5 model.
Hyundai Wia is positioning the thermal management system, a key component of electrification, as a future growth driver while nurturing the related industry. Earlier this year at CES 2026 in Las Vegas, the company unveiled its integrated thermal management module (ITMS), cooling module, and slim heating, ventilation, and air conditioning (HVAC) system.
With the growth potential of internal combustion engine vehicles slowing, Hyundai Wia is pushing to expand its thermal management parts business. Temperature management is particularly crucial for electric vehicles, as the battery and motor must operate within optimal temperature ranges to maintain stable driving ranges.
A Hyundai Wia representative stated, "We are increasing investments to maintain profitability in our existing internal combustion engine business while developing the thermal management system as a future growth engine. We plan to expand our supply range in line with global automakers' electrification model expansion plans."
The domestic automotive market is gradually expanding its electrification models. The Hyundai Motor Group aims to establish a lineup of 31 electric vehicles by 2030 as part of its electrification strategy.
Notably, next year will see the launch of the first long-range electric vehicle (EREV) model, which will offer a driving range of over 600 miles (approximately 965 km), highlighting the increasing importance of the thermal management system that controls it.
Hanon Systems, a leading company in the domestic thermal management market, is directly benefiting from the electrification of the mobility industry. Hanon Systems supplies battery thermal management systems for electric vehicles (EVs), hybrid vehicles (HEVs), plug-in hybrid vehicles (PHEVs), and hydrogen fuel cell vehicles (FCEVs) to global automakers.
According to financial information firm FnGuide, Hanon Systems is expected to see its operating profit consensus for the second quarter of this year reach 109.1 billion won, a 69.7% increase compared to the same period last year (64.3 billion won).
Industry experts believe that as electric vehicle technology advances, the importance of supporting thermal and energy management technologies will grow. Professor Kim Pil-soo of Daelim University’s Future Mobility Department stated, "The higher the performance of electric vehicles, the more the level of thermal management technology determines performance and efficiency. As the adoption of electrified vehicles expands, the related market will continue to grow."
* This article has been translated by AI.
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