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Main associates of Hyundai to join the electric market as long-term providers turn to outsiders 

 

SEOUL (Reuters): As Tesla Inc. hurries to shift to electric vehicles, Hyundai loyal providers have decided to turn to outsiders to provide motor parts. However, Mobis, an automaker and a supplying entity based in South Korea, has decided to muscle into the game. 

That type of decision is a direct answer to Volkswagen and Tesla’s entities as they fight for providers that Hyundai has worked for many past years. Ahn Byung-ki, an assistant leader of the electric power train venture at Hyundai Mobis, stated that the entity is not able to provide for other entities since it is monitoring Hyundai’s progress. Byung-ki added that the overall price would reduce if the firm continues to sell to other outside entities.  As a result, global firms, Hyundai being one of them, will be significantly affected. 

Chung Mong-Koo, the chairman of Hyundai Motor Group, is the main stakeholder of Hyundai Mobis, enabling it to receive over 90% of its revenue from the mothership. Ahn Byung-ki stated that reducing electric vehicles’ cost is crucial to compete with cheaper gasoline without financial support since Chinese competitors have left Hyundai and Tesla out of the list. 

Mobis hopes to win the tender from two of global carmakers before this year ends. If it wins the deal, the firm will have the opportunity to supply electric power trains. However, the entity has been a provider of other electric cars to Fiat – Chrysler, among other companies. Hyundai providers can decide to exploit the longtime experience of Hyundai to make eco-friendly vehicles. As a result, Hyundai providers will be the leaders, followed by European entities that have places they focus majorly on diesel. 

According to researcher LMC Automotive, Hyundai Motors and Kia Motors appear as the third position on international electric battery sales in 2019. Tesla and Renault-Nissan were the leaders in electric battery sales. Euisen Chung, the heir of Hyundai Motor Group and de facto chairman, confirmed Hyundai’s goal, where it aims to have over 10% electric vehicles on the global market in the next five years. 

Hyundai Glovis Co Ltd, an affiliate of Logistics, counts Euisun Chung as its main stakeholder. It has also enlarged the territory to fish more customers from Hyundai to Tesla and Volkswagen to convey transport cars across the globe.