Hyundai Mobis, An affiliate of the Hyundai Motor Group, said today that it won a combined $233 million order from Japan’s Mitsubishi Motors and Subaru to supply automotive lamps in what will be its first parts supply to Japanese automaker.
The deal comes as Japanese and other car makers are increasingly looking at South Korean parts makers which offer cheaper, quality products as opposed to their Japanese rivals struggling with the strong yen and the March 11 earthquake.
Hyundai Mobis, South Korea’s largest auto supplier said it will supply $200 million worth of headlamps to Mitsubishi Motors and $33 million of rear lamps to Subaru, an automobile manufacturing unit of Fuji Heavy Industries, from the second half of this year.
Hyundai Mobis previously agreed to provide its lamps to Europe’s BMW and Volkswagen as well as U.S. Chrysler Group LLC.
“Japanese and other car makers are turning to South Korean parts makers to save costs and diversify sourcing following the March 11 earthquake,” said Lee Sang-hyun, an analyst at NH Investment & Securities.
Hyundai Mobis, which heavily relies on its sister companies Hyundai Motor and Kia Motors for sales, aims to generate 30 percent of its revenue form overseas exports by 2015, from the current 10 percent.