Daedong Gear Secures KRW 146.1 Billion EV Component Supply Deal with Hyundai Transys
Daedong Gear Secures KRW 146.1 Billion EV Component Supply Deal with Hyundai Transys
- Core gear modules for next-generation electric vehicles (EVs) and extended-range electric vehicles (EREVs) to be supplied from 2025 to 2032
- Contract value equals about 63% of Daedong Gear’s standalone annual revenue in 2024, following last year’s KRW 1.4 trillion EV component orders
- Recognized for its technology amid the EV industry’s transition, Daedong Gear plans to further strengthen its e-powertrain business
Daedong Gear Co., Ltd. (CEO: Suh Jong-hwan), Daedong Group’s subsidiary specializing in powertrain products, announced on June 18 that it has signed a supply agreement with Hyundai Transys for core gear module products to be used in next-generation electric vehicles (EVs) and extended-range electric vehicles (EREVs).
The contract runs from 2025 through 2032 with an estimated value of KRW 146.1 billion. This order amounts to approximately 63% of Daedong Gear’s standalone annual revenue in 2024, making it a significant milestone for the company. Revenue will be recognized as individual purchase orders (POs) are issued.
The latest order includes key components for electronic all-wheel drive (e‑AWD) systems, such as the Carrier and Differential Module (CARRIER & DIFF ASS’Y), along with an Output Gear Sub Module (OUTPUT GEAR SUB ASS’Y) and an Input Gear Sub Module (INPUT GEAR SUB ASS’Y) for next-generation EREVs. These parts are essential elements of EV drivetrains, ensuring that motor power is delivered precisely to each wheel. To further reduce noise in electric vehicles, Daedong Gear will apply advanced precision gear grinding technology in the production of these core components.
Notably, the Carrier and Differential Module marks an expanded order that extends Daedong Gear’s supply from existing EV platforms to the new EREV platform, demonstrating the company’s scalable manufacturing capacity and proven development expertise. After securing orders for a variety of EV modules last year and establishing the necessary production facilities, Daedong Gear expects to generate even more follow-up business going forward.
In 2024 alone, the company won hybrid and electric vehicle component supply contracts worth KRW 1.4234 trillion. With the latest deal, its total order backlog has now reached approximately KRW 1.5695 trillion. Although the EV industry is currently experiencing a temporary slowdown, often referred to as the “chasm,” Daedong Gear continues to earn recognition for its technology and steadily builds a strong track record of meaningful contract wins. Daedong Gear has built strong relationships with a wide range of domestic and international customers by leveraging superior cost competitiveness over its rivals. The latest contract is regarded as further proof of the company’s ability to deliver both outstanding quality and competitive pricing.
Going forward, Daedong Gear plans to expand its technology leadership across the entire electrified powertrain spectrum, including EVs, EREVs, and PHEVs. The company also aims to strengthen its role as a key supplier for next-generation mobility by accelerating quality innovation and enhancing its mass-production systems, while deepening collaboration with leading automakers.
In addition, Daedong Gear is developing a new manufacturing process that allows modules, previously assembled by welding two gears together, to be produced as a single integrated component. Once commercialized, this innovation is expected to significantly improve both durability and cost efficiency, giving the company a distinct competitive edge in future bids.