Hyundai Mobis announced the launch of its new plant in Hungary, which will supply chassis modules to Mercedes-Benz. This expands their partnership beyond existing collaborations in North America.
The new facility, located in Kecskemet, central Hungary, marks Hyundai Mobis’ first European production base specifically dedicated to serving global customers outside of the Hyundai Motor Group. This is their fourth manufacturing site in Europe, adding to existing plants in the Czech Republic, Slovakia, and Turkey.
The Hungary plant is set to mass-produce chassis modules designed for both electric vehicles (EVs) and hybrid vehicles. The plant’s design also incorporates the flexibility to produce modules for internal combustion engine (ICE) vehicles if needed.
While Hyundai Mobis has not disclosed the exact contract value, industry experts suggest the agreement is significant due to the substantial scale of chassis module supply and Mercedes-Benz’s reputation as a premium automotive brand.
The plant operates using a just-in-sequence (JIS) production system. This allows Hyundai Mobis to receive real-time production schedules directly from Mercedes-Benz, ensuring modules are delivered in the precise sequence required for vehicle assembly. This system also allows for rapid adjustments to production plans.
This agreement builds upon the established partnership between the two companies. Since 2022, Mercedes-Benz has been sourcing chassis modules for its North American models from Hyundai Mobis’ plant located in Alabama.
Hyundai Mobis’ expansion into Hungary is strategically timed as the country is rapidly becoming a key automotive and battery manufacturing hub in Eastern Europe. The country currently produces over 500,000 vehicles annually and hosts production facilities for major global automakers and battery manufacturers from Germany, China, and South Korea.
To further strengthen its presence in Europe, a major automotive market and the second-largest EV market globally, Hyundai Mobis is also constructing a battery system plant in Spain. This will become their fifth manufacturing site in the European region.
As part of its long-term strategic vision, Hyundai Mobis aims to increase the proportion of revenue generated from global customers to 40% by 2033. This will be achieved by expanding partnerships in key markets including North America, Europe, and rapidly growing regions such as China and India, ultimately reducing reliance on the Hyundai Motor Group.
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