Spain BSA factory begins operation this month
Hungary plant for Mercedes-Benz opens in March
Slovakia starts EV drivetrain mass production
Europe sales hit record high in Q1
Europe is emerging as the key market that will define Hyundai Mobis's global performance this year. Three major European facilities — in Spain, Hungary and Slovakia — have come online in the first half of 2026 alone. Analysts say the company is using Europe as a proving ground for its ambition to break into the ranks of the world's top-tier auto parts suppliers, driven by growing orders from non-affiliate automakers for electrification components.
According to industry sources, Hyundai Mobis began operating its battery system assembly (BSA) factory near Pamplona in the Navarra region of Spain earlier this month. The plant was completed in December last year and has since undergone equipment stabilization and trial-run procedures before entering full mass production.
The facility serves as a dedicated battery system supply base for the Volkswagen Group. It has a total floor area of roughly 50,000 square meters and an annual production capacity of up to 360,000 units. Its location about 10 kilometers from Volkswagen's vehicle assembly plant also gives it a logistics advantage.
A BSA is a finished product that integrates a battery pack with control units and other electronic components, and is considered a core component of any electric vehicle. With EV demand in Europe showing signs of recovery this year, the Spain plant is expected to serve as a strategic base for Hyundai Mobis to respond to shifts in local automakers' battery supply chains and broaden its order pipeline over the medium to long term.
Hungary is also central to Hyundai Mobis's European strategy. The company formally launched its new factory in Kecskemét, Hungary, in March. Spanning roughly 50,000 square meters — equivalent to seven soccer fields — the plant is Hyundai Mobis's first production base in Europe built exclusively to supply a global automaker outside its affiliate group.
The Hungary factory supplies key chassis modules for Mercedes-Benz electric and hybrid vehicles. A chassis module is a large integrated assembly combining major underbody components including steering, braking and suspension systems. The plant operates on a just-in-sequence basis, receiving real-time production schedules from the customer and delivering parts in the exact order needed.
Hyundai Mobis chose Hungary for its first Europe-based factory dedicated to a global non-affiliate customer, citing the country's vehicle manufacturing base and logistics efficiency. Hungary has recently emerged as a hub for automotive and battery production, with numerous global automakers maintaining facilities there. The company plans to use the Hungary plant as a springboard to raise the share of non-affiliate sales from around 10 percent today to roughly 40 percent by 2033.
In Eastern Europe, Slovakia is taking shape as a key production hub for EV drivetrains. Hyundai Mobis invested approximately 350 billion won ($230 million) to build its first PE system factory in Europe in the Nováky area of Slovakia and began full-scale mass production in the first quarter of this year. A PE system integrates an electric motor, inverter and reducer into a single EV drive unit. The plant has an annual production capacity of 300,000 units.
Slovakia is home to a cluster of global automakers including Kia, Volkswagen, Stellantis and Jaguar Land Rover. Hyundai Mobis's decision to establish a drivetrain production base there is seen as a preemptive move to capitalize on the recovery of the European EV market.
Synergies with existing European facilities are also growing. In Nošovice, Czech Republic, Hyundai Mobis produces battery systems for electric vehicles in coordination with Hyundai Motor's local assembly plant. After launching a new BSA factory there in August 2023, the company completed a new logistics center, TM1, last year, introducing an automated system capable of stacking heavy batteries up to five tiers high — simultaneously boosting production and logistics efficiency across Europe.
The expansion of European facilities is showing up in the financials. Hyundai Mobis posted record European sales of 2.3303 trillion won in the first quarter of this year, up about 9.0 percent from 2.1377 trillion won in the same period a year earlier. The growth is attributed to increased supply of high-value products including electrification components and chassis modules.
Europe is also accounting for a growing share of orders from non-affiliate customers. In the first quarter, Hyundai Mobis secured separate orders for steering and braking products from major European automakers. The steering products are to be manufactured at its Changwon factory in South Korea, and the braking products at its Wuxi factory in China.
The outlook for European earnings remains bright. Orders from the Europe and India region totaled $177 million in the first quarter of this year, already surpassing the full-year order totals of $132 million in 2024 and $116 million last year. Europe also accounted for the largest share of Hyundai Mobis's total first-quarter orders of $316 million.
kwater@heraldcorp.com
