Hyundai Mobis Expands Chassis Module Supply to Europe: What This Means for EV and Hybrid Markets

Hyundai Mobis is expanding its supply of chassis modules to Mercedes‑Benz in Europe, following its existing work in North America. The company said on the 10th that it has opened its first Europe-based production hub dedicated to a global customer in Hungary and has moved into full-scale operations.

Hyundai Mobis attributes the win to a proven track record of stable deliveries, accumulated production know-how and strong quality performance after several years of supplying chassis modules to the automaker. Since 2022 the company has supplied chassis modules to Mercedes‑Benz from its Alabama plant in the U.S.

The new plant is located in Kecskemet in central Hungary, positioned close to the customer to accelerate module deliveries and maximize logistics efficiency. Hyundai Mobis runs a just-in-sequence (JIS) production system, receiving production schedules in real time from the customer and producing components immediately. The site covers about 50,000 square meters (roughly 538,000 sq ft), approximately the size of seven soccer fields.

The company declined to disclose contract value or the specific models involved, citing standard practice, but the deal is expected to be significant given the scale of chassis modules and the premium status of the customer brand.

From the Hungary plant, Hyundai Mobis will supply chassis modules for electric vehicles and hybrid models. The facility is also equipped for mixed production of internal-combustion and other powertrains, allowing the company to ramp up additional supply and respond quickly to varying production plans from the automaker.

Hungary has rapidly emerged as an Eastern European hub for vehicle and battery production. Annual new-car output exceeds 500,000 units, and a number of global automakers operate production sites there. In addition to German manufacturers, Chinese automakers and battery companies have announced large investments recently, and South Korean battery suppliers are also expanding in the market.

Hyundai Mobis selected Hungary as a new base partly to pursue additional orders from global customers across Europe. The Hungarian site is the company’s fourth European production hub after the Czech Republic, Slovakia and Turkey, and it will operate as Hyundai Mobis’s first facility dedicated to a global customer.

Once a Spanish plant that supplies battery systems to another global customer begins operations, Hyundai Mobis will operate a total of five production hubs across Europe. The company expects its production competitiveness to improve further as it builds a more stable parts-supply network.

Hyundai Mobis said it expects the Hungary plant to help deepen long-term partnerships with its customers. Chassis modules integrate major underbody systems — brakes, steering and suspension — and establishing production and logistics capabilities requires substantial investment, which often leads to long-lasting supplier–customer relationships based on mutual trust.

Under a goal to raise sales to global customers to a 40% share by 2033, Hyundai Mobis is concentrating its efforts on winning more global business. Earlier this year at CES, the company hosted global customers in a private booth to showcase its products. It plans to strengthen collaborations with key customers in North America and Europe by leveraging its leading technologies, while also seeking to expand orders in high-growth markets such as China and India.