Hyundai Mobis said Tuesday it has begun full operations at its first production base in Hungary as it moves to expand business with European automakers.
The company recently won a contract to supply chassis modules to Mercedes-Benz in Europe, following a deal in North America in 2022. Under industry practice, Hyundai Mobis did not disclose the contract value or specific vehicle models. However, the industry expects the order to be sizable given Mercedes-Benz’s sales in Europe and the large-volume nature of chassis module procurement.
A company official said the deal was backed by Hyundai Mobis’ track record of stable supply to Mercedes-Benz over several years, along with its manufacturing know-how and quality competitiveness.
The new plant is in Kecskemet in central Hungary, located near the customer to speed deliveries and improve logistics efficiency. Hyundai Mobis said it is operating a just-in-sequence system that receives production plans in real time and builds modules immediately. The site covers about 50,000 square meters, roughly the size of seven soccer fields.
The Hungary plant will produce chassis modules for electric and hybrid vehicles. Hyundai Mobis said it also plans to install equipment capable of mixed production with internal combustion models to respond quickly to changing customer schedules.
Hungary is emerging as an auto and battery manufacturing hub in Eastern Europe, with annual new-vehicle output exceeding 500,000 units. German automakers have production bases there, and Chinese automakers and battery makers have also made large investments. Hyundai Mobis said its Hungary plant will be its fourth production base in Europe after the Czech Republic, Slovakia and Turkey, and its first site dedicated to global customers.
Hyundai Mobis is also building a plant in Spain to supply battery systems to global customers. Once the Spain plant begins operations, the company said it will have five production bases covering Europe and expects stronger manufacturing competitiveness on the back of a more stable parts supply chain. The company aims to raise the share of revenue from global customers to 40% by 2033.
A Hyundai Mobis official said chassis modules are large assemblies that integrate braking, steering and suspension components under a vehicle, requiring major investment in production sites and logistics systems. The official said the Hungary plant will help sustain long-term partnerships with customers, given the typically lengthy cooperation between automakers and suppliers.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.