Hyundai Motor Group announced that its main automotive components subsidiary, Hyundai Mobis Company, has completed the construction of a new production facility in Hungary.

The new plant, located near the central city of Kecskemét, was built to supply chassis modules such as steering and braking systems to the nearby Mercedes-Benz assembly plant, which makes models such as the CLA, EQB, and A-Class. Hyundai confirmed that the new plant will initially supply chassis modules for Mercedes-Benz’s battery-electric and hybrid vehicles.

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The facility, which covers an area of around 50,000 square metres, operates under a Just-in-Time and Just-In-Sequence (JIS) system, enabling real-time processing of production plans for immediate manufacturing and delivery. It features flexible production lines capable of mixed production of electric, hybrid, and internal combustion engine (ICE) vehicle components, ensuring rapid responsiveness to diverse customer production plans.

Hyundai said in a statement: “The trust earned through Hyundai Mobis’s proven record of stable supply, advanced production technology, and strong quality competitiveness at its Alabama plant in North America has led to additional supply contracts in Europe.”

Hyundai Mobis currently operates production bases in the Czech Republic, Slovakia, and Turkey, which mainly supply modules and core components to Hyundai Motor and Kia. The newly established Hungarian plant will serve as a dedicated production base for global customers.

Hyundai Mobis is also scheduled to complete construction of a new electric vehicle battery plant in Spain this year, to supply battery systems to Volkswagen group. The company said its new production facilities will help strengthen its competitiveness in the region.