Mando acquires JV to boost footing in autonomous vehicle industry

South Korea-based Mando Corp. is set to acquire electronic auto parts maker Mando-Hella Electronics Corp. in a deal valued at 165 billion won ($148 million), the company announced on Feb. 3. 

Mando, the auto parts maker under Halla Group, is aiming to diversify and strengthen its auto parts portfolio for self-driving vehicles as the electric and autonomous vehicle markets continue to post rapid growth.

Established in 2008, Mando-Hella is a joint venture between Germany-based auto parts supplier Hella and Halla Holdings Co., the holding unit of Korean auto parts distributor Halla Group. Mando will acquire a 50% stake each from Hella and Halla Holdings. 

The JV makes core parts for self-driving cars, such as advanced driver assistance systems (ADAS), electronic control units (ECU) and sensors.

“This deal will boost Mando’s autonomous driving technology,” said Cho Seong-hyeon, president of Mando. “We will self-produce core parts for autonomous vehicles to enhance our price and quality competitiveness,” Cho said.

Mando aims to create a complete lineup of auto parts for self-driving cars, including radars, cameras and controllers. The Korean auto parts maker will work closely with Mando-Hella's software and R&D teams to diversify its product portfolio.

Other planned developments include sensors that detect passengers, controllers and short-range radars. Mando currently mass produces mid- and long-range radars.

Last month, the company unveiled its future automotive solution, Steer-by-Wire (SbW), at the Consumer Electronics Show (CES) 2021. The SbW system allows for the separation of the chassis and steering wheel via an electric signal. Previously, they were mechanically connected and could not be separated.

The SbW creates extra space in the car, giving drivers in autonomous vehicles more room to move. Mando plans to produce an electric control unit for the SbW system and a high-performance long-distance radar through Mando-Hella.

Meanwhile, the Korean auto parts maker plans to increase its global sales by utilizing Mando-Hella’s overseas production sites in China and India.

Last year, Mando-Hella reported revenue of around 680 billion won ($609 million). 

Write to Byung-wook Do at dodo@hankyung.com
Danbee Lee edited this article.