South Korean auto parts manufacturer Hyundai Mobis Company said it plans to increase expenditure on research and development by 3.6% to KRW1trn (US$810m) in 2020, as it looks to strengthen future revenues streams.
In its latest sustainability report, the Hyundai Motor Group affiliate said it will invest in some 2,000 R&D projects involving next-generation vehicle technologies, while expanding its R&D workforce to over 5,000 people. Overall capital expenditure is expected to rise from KRW1.3trn last year KRW1.5trn in 2020.
Among the key areas of R&D investment is autonomous vehicles, which the company sees as a key driver of future growth, along with powertrain electrification and other environmentally friendly solutions.
The company announced earlier this year plans to raise KRW9trn in fresh funds for expansion over the next three years, including between KRW3trn and KRW5trn in new capacity to produce electric parts and between KRW4trn and KRW5trn to enhance its capabilities to develop future vehicle technologies and other R&D activities. It has also earmarked KRW150bn to invest in startup companies.
Hyundai Mobis is South Korea’s largest components manufacturer, having generated a turnover of KRW38,049bn in 2019 – mainly from the sale of body and chassis systems to Hyundai and Kia.