이 기사는 2021년 06월 15일 08:14 thebell 에 표출된 기사입니다.

Mando Corp is seeking to diversify its customer base away from Hyundai Motor Group, which currently accounts for more than half of the autos parts supplier’s revenue.

The South Korean company on Wednesday announced a plan to split off its advanced driver assistance system division and part of its mobility business to create a new subsidiary in September. In a conference call held on the same day, Mando said the new entity, tentatively called Mando Mobility Solutions (MMS), would likely generate 34% of its revenue from affiliates of Hyndai Motor Group.

This compares with Mando's current heavy reliance on the auto conglomerate. Roughly 58% of the auto parts maker’s 2020 revenue came from Hyundai Motor and its affiliates including Kia Motors, Hyundai Mobis and Hyundai Wia.

Mando, part of Halla Group, has had a close relationship with Hyundai Motor Group as Halla Group chairman Chung Mong-won is a descendant of the late Hyundai founder Chung Ju-yung.

But the company is aiming to lower the reliance of its new subsidiary on the conglomerate to a third of the total revenue, saying MMS already secured orders for its advanced offerings. Mando expected MMS to produce revenue of 1.2 trillion won ($1.1 billion) this year and 2 trillion won in 2025.

Mando will hand over its wholly owned subsidiary Mando-Hella Electronics to MMS, which is expected to drive the auto parts maker’s future growth. Mando-Hella Electronics, which has two subsidiaries in China and India, has grown rapidly for the past decade.

Mando-Hella Electronics’ Chinese unit reported revenue of 151.3 billion won last year, up 26.8% from a year earlier. This contrasts with Mando’s domestic peers struggling in the Chinese market in recent years. The Chinese unit also swung to a net profit of 3 billion won last year. In the same period, Mando-Hella Electronics’ Indian business recorded a net loss of 1.7 billion won on revenue of 38.6 billion won, up 10% year-on-year.

Mando also plans to expand its operations and customer base in North America where its customers include US auto giant General Motors.

After the planned split-off, the existing company’s core business will be electrified chassis products, which Mando expected to produce revenue of 5.2 trillion won this year and 7.4 trillion won in 2025. Mando said it would also raise the existing company's share of non-Hyundai Motor Group customers from 32% in 2021 to 48% in 2025. (Reporting by Gyoung-tae Kim)