Hyundai Mobis opens its first Europe-based production hub dedicated to a global OEM in Hungary
Mass production begins for chassis modules for electric and hybrid vehicles… Hyundai Mobis deepens cooperation with Mercedes‑Benz
Targets 40% of global sales from OEM customers by 2033… Strategy to bolster the European supply chain
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How is Europe’s electric-vehicle supply chain being reshaped? Changes in the parts supply network are becoming as consequential as shifts among automaker brands. Hyundai Mobis’s decision to open a production hub in Hungary dedicated to a global automaker—and to begin supplying additional chassis modules to Mercedes‑Benz—illustrates that trend. As EV production accelerates across Europe, this partnership could have meaningful industrial implications.
Europe’s first plant dedicated to a global customer
Hyundai Mobis has established its first European production hub dedicated to a global automaker in Hungary and has begun full-scale operations.
The new plant is located in Kecskemét in central Hungary. Mercedes‑Benz already runs production facilities in the area, so Hyundai Mobis placed the plant close to its customer to optimize logistics.
The site covers about 50,000 m² (roughly 538,200 sq ft), about the size of seven soccer fields. The facility employs a Just In Sequence production system to manufacture and deliver parts in step with the customer’s production schedule. That approach supplies components nearly simultaneously with vehicle assembly and is widely regarded as an efficiency best practice in global auto manufacturing.
Deepening cooperation with Mercedes‑Benz… supplying modules for EVs and hybrids
At this plant, Hyundai Mobis will produce chassis modules for electric and hybrid vehicles.
A chassis module bundles major underbody systems—brakes, steering, and suspension—into a single, large assembly. It’s one of the most critical elements of a vehicle platform.
The Hungarian facility is also equipped to mixed-produce parts for internal-combustion vehicles as well as electrified models, giving Hyundai Mobis flexibility to meet diverse customer production plans.
Since 2022, Hyundai Mobis has supplied chassis modules for Mercedes‑Benz models in North America from its Alabama plant. Expanding production into Europe further strengthens that supplier-customer relationship.
Hungary emerges as a European auto production hub
Choosing Hungary for this investment is notable. The country has rapidly grown into a core production base for Europe’s automotive and battery industries. Annual vehicle output exceeds roughly 500,000 units, and many German premium-brand factories operate there.
Recently, Chinese automakers and battery makers have invested heavily in Hungary, and Korean battery firms are also expanding production sites. Together, these moves have positioned Hungary as a strategic hub for Europe’s EV industry. Hyundai Mobis selected Hungary as a new production base with these shifts in mind.
Expanding the European production network
The Hungarian plant is Hyundai Mobis’s fourth production base in Europe. The company already operates facilities in the Czech Republic, Slovakia, and Turkey. Adding Hungary further extends its European footprint.
If a planned battery-system plant in Spain comes online, Hyundai Mobis will operate five production bases across Europe.
Hyundai Mobis says the expansion is aimed at strengthening partnerships with automakers and securing a more resilient supply chain.
Why chassis modules matter in the auto industry
The chassis-module business is about more than parts supply. Because a chassis module forms the vehicle’s underbody core, establishing production equipment and logistics requires significant investment. That often leads to long-term collaborations between automakers and suppliers.
Securing a module supply contract with a global automaker signals recognition of a supplier’s technical capability and quality competitiveness.
Target: 40% of sales from global OEM customers
Hyundai Mobis plans to increase the proportion of revenue from global automaker customers, targeting about 40% by 2033. To achieve that, the company will deepen technical cooperation in North America and Europe and pursue new orders in emerging markets such as China and India.
At CES earlier this year, Hyundai Mobis invited global automaker customers to a private booth to showcase its technologies and underscore its competitive strengths.
Hyundai Mobis’s position amid competition
European suppliers such as Bosch, Continental, and ZF have long dominated the global auto-parts market, wielding strong influence in chassis systems and electrification technology.
Hyundai Mobis’s move to deepen cooperation with Mercedes‑Benz and establish a European production hub signals an effort to strengthen its competitiveness in that landscape.
In the EV era, influence is shifting: not only automaker brands, but also parts suppliers that control core technologies in batteries, chassis, and electrification increasingly shape the industry.
Editor’s note
As EVs move into the mainstream, competition in the auto industry is no longer just among vehicle makers. The role of parts suppliers that deliver core technologies behind the scenes is growing more critical.
Hyundai Mobis’s expansion in Europe and deeper collaboration with Mercedes‑Benz underscore that shift.
We’ll be watching how Hyundai Mobis positions itself in the global EV supply chain and how Korea’s parts industry asserts its presence going forward.
