Seoul:<Text>
Hyundai Mobis Co., South Korea's leading auto parts maker, reported a 14 percent decrease in its first-quarter net profit due to weakened global vehicle demand influenced by ongoing tensions in the Middle East. The company revealed that net profit for the three-month period ending in March dropped to 883.05 billion won (US$596 million) from 1.03 trillion won the previous year, as disclosed in a regulatory filing.
According to Yonhap News Agency, a company official attributed the decline in vehicle sales and parts demand to "rising external uncertainties linked to prolonged tensions in the Middle East." Despite this downturn, Hyundai Mobis experienced a 3.3 percent increase in operating profit, reaching 802.65 billion won from 776.68 billion won, driven by an increased supply of high-end electric components to global carmakers. Sales also rose by 5.5 percent to 15.56 trillion won, up from 14.75 trillion won during the same period.
In response to t he challenging market conditions, Hyundai Mobis announced plans to invest 2.1 trillion won in research and development this year to enhance its competitiveness in future mobility solutions, marking a 12 percent increase from last year. The company, which generates about 90 percent of its parts sales from affiliates Hyundai Motor Co. and Kia Corp., aims to significantly boost its overseas parts sales share from 10 percent to 40 percent by 2033. Additionally, Hyundai Mobis holds a 21.86 percent stake in Hyundai Motor.
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