Hyundai Mobis President Lee Gyu-suk speaks during the firm's 2024 CEO Investor Day in Seoul, Tuesday. Courtesy of Hyundai Mobis

Hyundai Mobis aims for an average annual revenue growth of 8 percent by 2027, driven by rising sales of electric vehicle (EV) parts and other high-value core components, the company said during its CEO Investor Day, Tuesday.

The auto parts maker also shared its goal of attaining an operating margin of up to 6 percent by 2027. On a longer-term basis, Hyundai Mobis will increase the portion of its global auto clients in its vehicle manufacturing sector to 40 percent by 2033 from the current 10 percent.

“With revenue growth becoming substantial around high-value core components, we anticipate qualitative growth based on profitability,” its President Lee Gyu-suk said during the event.

“Leveraging our leading technological competitiveness, we will expand the global carmaker's sales share to the aforementioned level, which will propel us to become one of the global top three automotive suppliers.”

The auto parts arm of Hyundai Motor Group also expressed hopes to proactively deal with the ongoing mobility paradigm shift by meeting demands for extended-range electric vehicles (EREV) and economical electric powertrain systems.

The EREV is equipped with an internal combustion engine and a battery, but as the EREV engine is used only to charge the battery, it is more like a typical EV than a hybrid. In August, Hyundai Motor identified EREVs as its key growth pillar to tackle the ongoing slowdown in the global EV industry.

According to Hyundai Mobis, the EREV is undergoing a phase of design verification and evaluation, and its mass production is scheduled for the end of 2026.

Hyundai Mobis' Technical Center in Uiwang, Gyeonggi Province / Courtesy of Hyundai Mobis

The company also shared its plan to diversify its value-added product lineup in electronic braking systems and steering systems in the chassis and safety sector by replacing mechanical components with electrical signals.

“Based on this enhanced competitiveness, we aim to achieve a 10 percent global market share in the chassis safety sector by 2030,” Lee said.

Aside from achieving external earnings growth, the company pledged to expand its total shareholder return (TSR) to more than 30 percent over the next three years from the current 20 percent. TSR refers to the total return shareholders expect over a specific period through dividends and share buybacks or cancellations.

Hyundai Mobis also underscored its unwavering willingness to remain committed to environmental, social and corporate governance management by realizing what it calls “mobility through responsible innovation and clean technology.”

Under the pledge, it plans to achieve a 35 percent renewable energy transition rate and increase the sustainability audit rate of its manufacturing sites to 100 percent by next year.