The Real Power Behind Hyundai Motor and Kia’s Global No. 3 Ranking Lies in the Hidden Parts Champions That Nailed the Transition

While Hyundai Motor and Kia climbed into the global top three, the spotlight has always gone to the finished-vehicle brands. But what actually makes a car move is the combination of thousands of parts, and without the competitiveness of the suppliers responsible for that combination, those rankings would not last long. Especially now, as the familiar order of the internal combustion engine is breaking down and the center of gravity shifts toward EVs and SDVs. The key question is whether companies that once excelled in exhaust systems, engine cooling, and mechanical components can successfully pivot to thermal management, automotive electronics, power semiconductors, and software-friendly parts. That is where the next decade’s competitive landscape will be decided.

The most important question in the auto parts industry right now is who is offsetting the decline of ICE components by expanding electrification and electronic-content exposure. What is interesting is that a change that looks like a crisis is actually an opportunity for some companies. An exhaust-system maker moves into hydrogen fuel cell bipolar plates and ICCUs, a thermostat specialist expands into electric thermal management valves, and a body-parts supplier strengthens its presence in the EV era through hot-stamping lightweighting. Even within the same auto parts industry, the speed and direction of business transformation vary completely. In the end, the market is asking not about past supply records, but how many higher-value parts a company can put into the cars of the future.

Electrification & Thermal Management — Filling the Void Left by the Engine (6 companies)

In EVs, the engine may be gone, but heat is not. If anything, thermal management has become even more important, because batteries, cabin climate, and the power system all have to be controlled with far greater precision. That is exactly why Woori Industrial and Inzi Controls stand out. Woori Industrial is considered Korea’s No. 1 player in EV PTC heaters and HVAC actuators, and one of the global leaders as well. In EVs, where engine waste heat has largely disappeared, the role of the PTC heater can only grow. Inzi Controls, meanwhile, is expanding into EV thermal management with electric thermostats and coolant multi-valves, building on its overwhelming domestic base of 85%+ market share in thermostats. It is a rare case where strengths built in the internal combustion era become a ticket into the electrification era.

The first winners of the electrification shift are not the companies that abandoned engine parts, but the ones that redefined their relevance through thermal management and lightweighting. SJG Sejong is an even more symbolic example. It started from its identity as Korea’s No. 1 exhaust system company, but is now pivoting toward electrification components such as hydrogen fuel cell separators and ICCUs. In effect, it is answering head-on the question of whether an exhaust-system company can make the leap into the battery and hydrogen era. On the body side, Myungsin Industry has been supplying Tesla since 2017 with ultra-high-strength lightweight hot stamping parts, while Sungwoo Hitech has built a customer base spanning not only Hyundai and Kia but also VW and BMW, backed by its body parts, hot stamping, and bumper rails—where it holds what is effectively a domestic monopoly. Hwashin, too, is expanding from chassis parts such as subframes and control arms into battery cases. EVs have become heavier, and that has only increased the value of lightweight body and structural components. Who fills the space left by the engine? The answer is clearer than many think.

Company	Core focus
Woori Industrial	EV PTC heaters · HVAC actuators (No. 1 in Korea, global top-tier) · automotive electronics components
Inzi Controls	85%+ domestic thermostat share + expanding into EV thermal management with electric thermostats and coolant multi-valves
SJG Sejong (formerly Sejong Industrial)	Korea’s No. 1 exhaust system company → shifting toward electrification parts such as hydrogen fuel cell separators and ICCUs
Myungsin Industry	Body hot stamping (ultra-high-strength lightweighting) — supplying Tesla since 2017
Sungwoo Hitech	Body parts · bumper rails (effectively a domestic monopoly) · hot stamping — Hyundai · Kia · VW · BMW
Hwashin	Chassis (subframes · control arms) — expanding into EV battery cases

Automotive Electronics & Vehicle Semiconductors — The Brain of the Software-Defined Vehicle (5 companies)

The core of the SDV era is not about eliminating hardware, but about shifting where the center of gravity in hardware lies. At the heart of that shift are automotive semiconductors and electronic components. Telechips is a fabless company built around its Dolphin series of automotive infotainment APs, which it supplies to Hyundai Motor and Kia. As vehicle displays and infotainment systems become larger and more sophisticated, the importance of APs only rises. Nextchip has already mass-produced ADAS image-processing ISPs, and its autonomous driving SoC, Apache, is now at the commercialization stage. In other words, this is the semiconductor axis that supports the eyes and brain of the software-defined vehicle.

The point where automakers’ SDV transition actually translates into revenue is with suppliers that hold the keys to automotive APs, ADAS SoCs, and power semiconductors. Through its subsidiary Trinno Technology, iA is mass-producing automotive power semiconductors such as IGBTs and power modules. In electrification, power semiconductors are an unavoidable core component. Motrex is an automotive infotainment and digital cockpit company, with IVI accounting for about 82% of sales. The numbers speak for themselves about where the business is centered. Chemtronics, meanwhile, operates three business divisions—automotive electronics, ADAS surround-view, and display etching materials—giving it a different profile from companies focused on just one slice of the auto market. If you look at software-defined vehicles and only see software, that is only half the story. Where the money actually sticks is in chips, electronic modules, and cockpit hardware. And the companies making them are quietly becoming more valuable.

Company	Core focus
Telechips	Fabless automotive infotainment APs (Dolphin series) — supplied to Hyundai Motor and Kia
Nextchip	Mass production of ADAS image-processing ISPs + autonomous driving SoC (Apache) at commercialization stage
iA	Automotive power semiconductors (IGBTs, power modules) — mass production through subsidiary Trinno Technology
Motrex	Automotive infotainment and digital cockpit (IVI sales mix ~82%)
Chemtronics	Automotive electronics, ADAS (surround view), and display etching materials — 3 business divisions

Sensors · Optics · Wiring — The Car’s Eyes and Nervous System (5 companies)

Talking about autonomous driving and ADAS without sensors is meaningless. Camera modules, lenses, lamps, and wiring harnesses form the basic neural network that lets a car see, decide, and transmit commands. MCNEX is No. 1 in Korea and No. 5 globally in automotive camera modules. That said, a large share of its revenue still comes from mobile, and that needs to be considered as well. Its competitiveness in automotive is clear, but its portfolio has a different flavor from that of a pure-play auto parts maker. Sekonix ranks No. 2 globally in automotive camera lenses and also has automotive lamp optics. As the number of cameras rises, lens precision and mass-production capability become even more important.

The real winners in the vehicle sensor era are companies that understand cameras, optics, and high-voltage wiring all at once. SL is No. 1 in Korea in automotive headlamps with roughly 67% market share, and ranks around No. 5–6 globally. Lamps are no longer just simple exterior parts. They sit at the intersection of visibility, design, and vehicle electrification. On the wiring side, Yura Corporation handles wiring harnesses, high-voltage electrical systems, and charging couplers, and is considered to rank around No. 6 globally, while Kyungshin is a leading player among Korea’s three dominant suppliers—Yura, Kyungshin, and THN. The more the industry shifts toward EVs, the more important high-voltage wiring becomes. Just because it’s not easy to see, does that make it less important? Quite the opposite. The components that connect every electrical signal and every flow of power inside the vehicle are exactly the kind of indispensable parts that will remain essential to the very end.

Company	Core business
MCNEX	No. 1 in Korea and No. 5 globally in automotive camera modules (though most revenue still comes from mobile)
Sekonix	No. 2 globally in automotive camera lenses · automotive lamp optics
SL	No. 1 in Korea in automotive headlamps (~67%) · around No. 5–6 globally
Yura Corporation	Wiring harnesses · high-voltage electrical systems (including charging couplers) — around No. 6 globally (unlisted)
Kyungshin	Wiring harnesses — a leading player among Korea’s three dominant suppliers (Yura · Kyungshin · THN) (unlisted)

Chassis, Braking, Interior Trim, Materials — the Fundamentals of Moving and Stopping (6 companies)

EVs and SDVs may look flashy, but the fundamentals of an automobile still come down to its ability to move, stop, and endure. Pyeong Hwa Automotive is one of Korea’s leading suppliers in door hinges, latches, and checkers, and it holds numerous joint patents with Hyundai and Kia. You can’t dismiss a door opening and closing properly as a trivial issue. It’s a quality point drivers experience dozens of times a day, and it is directly tied to safety. Daewon Kang Up is Korea’s No. 1 suspension spring maker and the country’s only comprehensive spring manufacturer, while also operating a seat business. Sangsin Brake ranks No. 1 in domestic market share for brake pads and linings—in other words, friction materials. Even in an electrified future, a car still has to stop.

No matter how fast the auto industry races toward the future, the ultimate competitive edge will still be decided by the reliability of foundational components and materials technology. DY Duckyang is an interior parts supplier responsible for cockpit modules, crash pads, and door trims. It is effectively in charge of the quality of the cabin space drivers spend the most time in. The materials side gets even more interesting. HS Hyosung Advanced Materials is the global No. 1 player in PET tire cord with roughly 50% market share, and it also has carbon fiber and aramid businesses. Kolon Industries is the world’s No. 2 in tire cord, Korea’s No. 1 in aramid, and also produces airbag cushions. On the surface, these may look like traditional materials companies, but in reality they sit at the core of safety, lightweighting, and durability. If you think only batteries and semiconductors count as future industries, you’re looking at the automobile far too superficially.

Company	Core focus
Pyeong Hwa Automotive	Door hinges, latches, checkers — numerous joint patents with Hyundai and Kia; a leading domestic door-parts supplier
Daewon Kang Up	Korea’s No. 1 in suspension springs — the country’s only comprehensive spring maker + seats
Sangsin Brake	No. 1 domestic market share in brake pads and linings (friction materials)
DY Duckyang (formerly Duckyang Industry)	Cockpit modules, crash pads (instrument panels), door trims
HS Hyosung Advanced Materials	Global No. 1 in PET tire cord (~50%), carbon fiber, aramid
Kolon Industries	Airbag cushions, tire cord (global No. 2), aramid (Korea No. 1)

What to Watch Going Forward

From here, the bar for evaluating auto parts suppliers will only get tougher. The key question is no longer what they did well in the past, but what they can use to replace disappearing revenue from legacy components. Companies that are converting their internal-combustion legacy into electrification content—such as Woori Industrial with PTC heaters, Inzi Controls with electric thermostats and coolant multi-valves, SJG Sejong with hydrogen fuel cell separators and ICCUs, and Hwashin with its expansion into battery cases—won’t just survive; they may actually increase the value of parts per vehicle. The same goes for the lightweight body structures of Myungshin Industrial and Sungwoo Hitech. EVs are structurally heavier, which makes lightweighting not optional, but essential.

The next battleground will be SDVs, power semiconductors, and the expansion of content in existing parts reinterpreted for electrification. The electronics and semiconductor players—such as Telechips, Nextchip, and iA—are the companies turning automakers’ software competitiveness into real-world hardware. At the same time, it is hard to ignore wiring-harness players like Yura Corporation and Kyungshin, optics specialists like SL and Sekonix, and materials leaders like HS Hyosung Advanced Materials and Kolon Industries. The auto industry does not change overnight. But parts suppliers are already changing. If you want to understand the next 10 years for Hyundai Motor and Kia, you need to look first at how these suppliers’ portfolios are evolving, rather than at the automakers’ factories. That is where the answer lies—where the real gains are accumulating.

※ This article organizes company names, core businesses, and market positions based on publicly available materials cross-checked on the web, and some of the assessments reflect the author’s own views. It is not intended as a direct basis for investment decisions.

Written: July 2026. Ealexandro