Daedong Gear secures KRW 1.24 trillion order for core parts of electrified vehicles
“Daedong Group successfully establishes new business in the “e-powertrain” market”
Daedong Gear secures KRW 1.24 trillion order for core parts of electrified vehicles
- Wins order for ASS’Y parts for hybrid vehicle drive systems and reducer module project for EV platforms
- Set to supply to Hyundai Motor and Hyundai Transys until 2036. Estimated supply value near 390% of Daedong Gear's annual sales
- Successful business diversification into core parts for electric vehicles and mobility, cumulative orders in 2024 to reach KRW 1.4 trillion
Daedong Gear Co., Ltd. (CEO Noh Jae Eok), a powertrain specialist subsidiary of Daedong Group, announced on December 3 that it has secured a project to supply core components for Hyundai Motor Company and Hyundai Transys' electrified drive system, the “e-powertrain.” The project includes ASS'Y parts for next-generation hybrid vehicles and reducer modules for overseas electric vehicle EV platforms.
The supply contract will run from 2025 to 20364. The estimated supply value is KRW 1.2398 trillion, which is approximately 390% of Daedong Gear's annual sales revenue (separate) based on 2023 figures. Revenue will start flowing in when actual individual purchase orders (POs) are received. As for the new contract, the TMEDII HUB ASS'Y is a core component of hybrid vehicles, responsible for transmitting power to the transmission. Furthermore, the reducer module to be supplied overseas through Hyundai Transys is one of the three core components that transmits power in electric vehicles, and is planned to be installed in all vehicle types, including next-generation SUVs, sedans, and coupes.
Upon launching its e-powertrain business in 2022, Daedong Gear saw an opportunity to quickly become competitive in the market for core parts used in hybrid and electric vehicles given ▲global industry trends emerging in the electric vehicles and mobility sector, ▲50 years of experience and know-how in internal combustion engine power transmission parts, and ▲aggressive investment in the Group's mobility and robot business.
The company had previously secured an order worth KRW 183.6 billion for “Output Shaft Sub ASS'Y” parts for Hyundai Motor's new electric vehicle platform earlier this year. Including this latest order, Daedong Gear has secured KRW 1.4234 trillion in orders (cumulative) for electric vehicle parts in 2024 alone. This demonstrates that Daedong Gear is successfully diversifying its business and expanding its portfolio from power transmission parts from internal combustion engine-based automobiles, heavy equipment, and agricultural machinery to core parts for future mobility such as electric vehicles, hybrid vehicles, electric mobility, and robots.
In relation to this, Daedong Gear, headquartered in Sacheon-si, Gyeongsangnam-do, was founded in 1973, and has managed to grow continuously by supplying internal combustion engine power transmission parts for automobiles, heavy equipment, and agricultural machinery to Hyundai-Kia Motor Group, GM Korea, Hyundai Construction Equipment, Hyundai Doosan Infracore, Daedong, and others. The company aims to become a global leader in hybrid and electric powertrains by internalizing future technologies for electric mobility, including hybrid and electric vehicle modules and electric powertrains (electric motors, reducers, inverters, etc.).
Meanwhile, Daedong Group expects this order to create synergy in terms of developing electrification technology necessary for the group's future businesses in mobility and robotics. It also believes that as Daedong Gear strengthens its position in the e-powertrain business, the company will have a positive impact on sales when related products are launched.