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Hyundai-Kia marks 40 years of partnerships with over 100 suppliers: report
By Moon Joon-hyunPublished : May 19, 2024 - 15:26
There are more than 100 suppliers that have been working with Hyundai Motor Group for more than 40 years, the auto giant’s recent shared growth report found Sunday.
As of the end of last year, Hyundai and Kia, the two Hyundai brands, have been doing business with 105 suppliers for over four decades, which compared to 95 suppliers in 2022. The figures represent primary parts suppliers and exclude the group’s parts affiliates such as Hyundai Mobis and Hyundai Wia.
Of them, 36 percent were found to have been working with the brands since Hyundai’s inception in December 1967.
On average, Hyundai-Kia’s supplier relationships span 35 years. Breaking this down further, 102 suppliers have partnered with Hyundai-Kia for 30 to 40 years, 62 for 20 to 30 years, 12 for 10 to 20 years, and 9 for less than 10 years.
Financial growth among Hyundai-Kia’s suppliers has paralleled the auto giant’s expansion. By the end of last year, the average sales of these suppliers reached 370.8 billion won ($273.19 million), reflecting a 15 percent increase from 322.5 billion won in 2022. The number of suppliers with annual sales exceeding 100 billion won has surged in the last two decades, from 62 in 2001 to 157 in 2023.
Asset growth among these suppliers has also been substantial. The average asset size has surged to 298.4 billion won, a sixfold increase from the 50.9 billion won average in 2001.
The suppliers have also expanded their presence in overseas markets, with a total of 690 overseas operations, comprising 309 primary suppliers and 381 secondary suppliers.
More recently, a significant portion of these international collaborations have been focused on the electric vehicle sector.
Hyundai Motor Group Metaplant America, an EV factory being built in Bryan County, Savannah, Georgia, is a major initiative. It will include key parts suppliers such as Ecoplastic Body, which manufactures bumpers; A-Jin Industrial, which produces electrical components; and Hanon Systems, which specializes in vehicle cooling, heating and air conditioning systems.
