Seoul: The estimated combined sales of over 200 small and medium-sized enterprises (SMEs) that serve as tier-1 suppliers to leading automakers Hyundai Motor Co. and Kia Corp. surpassed 90 trillion won (US$62.7 billion) for the first time last year, the automakers said Tuesday.
According to Yonhap News Agency, the combined sales of 237 tier-1 SME suppliers for the two South Korean automakers were estimated at 90.3 trillion won for 2024, based on a joint survey by Hyundai and Kia. These firms, not affiliated with Hyundai Motor Group, specialize in automotive components, highlighting their significant role in the automotive supply chain.
When including the estimated sales of over 5,000 tier-2 and tier-3 suppliers, the total contribution of Hyundai Motor and Kia's supply chain is believed to significantly exceed 100 trillion won, the companies stated. This indicates the extensive network and economic impact of the automakers' suppliers.
Beyond sales, the 237 suppliers also demonstrated growth in key indicators, such as asset size and debt ratios, reflecting their overall financial health. These figures underscore the robust performance and strategic importance of the suppliers within the automotive sector.
Hyundai Motor and Kia highlighted that such readings suggest their supply chain contributes to the strength of South Korea's automotive industry and its broader economy. The companies emphasized the importance of collaborative growth with partners, which they believe is the foundation of competitiveness in the automotive industry.
"Hyundai Motor and Kia operate various practical mutual growth programs to support the sustainable development of suppliers," a Hyundai Motor Group official stated, underscoring the automakers' commitment to fostering a strong and competitive supply chain ecosystem.