Hyundai Wia logs $780 mn in constant velocity joint orders

Hyundai Wia Corp., a South Korean automotive parts manufacturer, said on Wednesday it secured 1.045 trillion won ($781 million) worth of overseas orders for constant velocity joints, used to connect vehicles’ transmissions to their wheels, in 2023.

It is the first time the company’s overseas orders received for the mechanical components surpassed 1 trillion won on an annual basis and marks a drastic increase compared to previous years.

In 2022, it signed 797.7 billion won worth of orders for the automotive parts with foreign companies, a surge from 136.4 billion won in 2021.

Constant velocity joints transfer the power of car engines to the wheels. Hyundai Wia has upgraded the quality by reducing noise, vibration and harshness to minimize power loss. It also made them much lighter than their previous models.

Since 2010, the Hyundai Motor Group’s arm has been exploring global markets to reduce its reliance on Hyundai Motor Co. and Kia Corp., its sister firms.

Since it began the production of constant velocity joints in 1988, Hyundai Wia’s cumulative output of the components topped 100 million units in 2017. It was the first domestic company to achieve this milestone.

In 2023, its annual production of constant velocity joints rose to 13.12 million units, versus 11.44 million units in 2019. The 2023 figure includes about 5 million units it manufactured at its overseas factories in China, India and Mexico.

Write to Jae-Fu Kim at hu@hankyung.com
 


Yeonhee Kim edited this article.