Hyundai Mobis, which has maintained a partnership with Mercedes-Benz in North America, is joining hands in Europe as well. It also built its first Europe-based, customer-dedicated production hub in Hungary to add supplies of chassis modules.
Hyundai Mobis said on the 10th that it recently began full operations at its new plant in Kecskemet, central Hungary. It uses a just-in-sequence method that takes production plans from the customer in real time and manufactures immediately. The plant site is about 50,000 square meters (about 15,000 pyeong), roughly the size of seven soccer fields.
Chassis modules for electric and hybrid vehicles to be supplied to Mercedes will be produced here. It also built facilities capable of mixed production with internal combustion vehicles to provide additional supplies. This secures the flexibility to respond quickly to the customer's diverse production plans.
Hyundai Mobis has supplied chassis modules to Mercedes through its Alabama plant in the United States since 2022. On the expansion of the partnership to Europe, a Hyundai Mobis official said, "Over the past several years of supplying chassis modules to Mercedes, we have built a track record of stable supply, production technology, and quality competitiveness."
Hyundai Mobis did not disclose the supply amount or target models under contractual norms, but given the nature of chassis modules as large-scale parts and the customer's status as a premium brand, the scale is known to be considerable.
Hungary is rapidly emerging as a production hub for automobiles and batteries in Eastern Europe. Annual new car production exceeds 500,000 units, with numerous global automakers clustered there. In light of the potential for additional orders from global customers in Europe, Hyundai Mobis selected Hungary as a new base. Hungary is Hyundai Mobis' fourth production hub in Europe after the Czech Republic, Slovakia, and Turkiye, and it will be operated as the first hub dedicated to a global customer.
When the plant in Spain that supplies battery systems to another global customer comes online, Hyundai Mobis will have a total of five production hubs covering all of Europe. A Hyundai Mobis official explained, "Based on the establishment of a stable parts supply chain, production competitiveness is also expected to improve."
Hyundai Mobis also expects a long-term partnership with the customer on the back of the Hungary plant. Chassis modules are large-scale parts that integrate braking, steering, and suspension components on the vehicle's underside, and they require large investments in production hubs and logistics systems. As a result, cooperation between customers and parts suppliers often continues for a long time based on mutual trust.
Hyundai Mobis aims to increase the share of sales to global customers to 40% by 2033. It will strengthen collaboration with key customers in North America and Europe while expanding orders in high-growth emerging markets such as China and India.