The thermal management system, which affects the driving range and charging speed of electric vehicles, is emerging as a new opportunity 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 the PBV (Purpose Built Vehicle) PV7, set to be launched by Kia next year. This expands the supply of thermal management systems from the previously supplied PV5 to the new model.
Hyundai Wia is positioning thermal management systems, a core component of electrification, as a future growth driver and is fostering related industries. Earlier this year at CES 2026 in Las Vegas, the company unveiled an Integrated Thermal Management System (ITMS), a cooling module, and a slim heating, ventilation, and air conditioning (HVAC) system.
As the growth potential of internal combustion engine vehicles slows, Hyundai Wia is ramping up its thermal management parts business. A company representative stated, "We are increasing investments to maintain profitability in our existing internal combustion engine business while developing thermal management systems as a future growth engine. We plan to expand our supply range in line with global automakers' electrification model expansion plans."
Typically, electric vehicles require more stringent temperature management than internal combustion engine vehicles, as the battery and motor must operate at optimal temperatures to maintain stable driving ranges.
The electrification model is expected to gradually expand in the domestic automotive market. 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), increasing the importance of the thermal management system.
Hanon Systems, a leading player in the domestic thermal management market, is directly benefiting from the electrification of the mobility industry. The company 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 projected to see its operating profit consensus for the second quarter of this year reach 109.1 billion won, a 69.7% increase compared to 64.3 billion won in the same period last year.
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 growth trend will continue."
* This article has been translated by AI.
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