South Korea’s Hyundai Mobis Company announced at a board meeting last week that it plans to invest up KRW10trn (US$8bn) over the next three years to strengthen its “new mobility solutions” business.

The Hyundai Motor Group affiliate said the main focus of the investment will be to strengthen its presence in the electrified powertrains segment and in related components, where it plans to invest up to KRW5trn-KRW6trn in “organic growth”. It also plans to invest a further KRW3trn-KRW4trn to expand its autonomous driving, advanced driver assistance system (ADAS) and software development operations.

The company said it will also “strive to make external investment through strategic M&A, including in autonomous driving and pertinent software”, adding that it will also look to invest in new businesses that will serve as the long-term growth engine such as advanced air mobility (AAM).

Hyundai Mobis also plans to continue to invest in R&D to improve future mobility competitiveness in core parts, including electrification and electronic components. The company had previously announced a target to generate orders worth US$5.4bn from global carmakers outside the Hyundai Motor Group this year, or some 10% of global revenues, up from the US$4.65bn targeted in 2022.

Hyundai Mobis also said it will put aside KRW5trn as a cash buffer this year to deal with unforeseen developments due to growing market uncertainties, as the global economy continues to slow.