Hyundai Transys, a major automotive parts subsidiary of Hyundai Motor Group, has secured a substantial USD 2.2 billion contract to supply advanced integrated electric vehicle (EV) drive systems to Centre, Saudi Arabia’s first domestic EV manufacturer. This agreement highlights Hyundai Transys’ technological expertise in the field of electric mobility.
This significant agreement, which was formalized at Hyundai Transys’ headquarters, is the first time in the company’s history that the Korean component manufacturer would provide its own EV drive system to a significant player in the global automobile industry. The Public Investment Fund (PIF) of Saudi Arabia founded Ceer in 2022, with the goal of producing 500,000 EVs a year by 2030. This program is a component of the kingdom’s ambitious plan to raise Riyadh’s electric vehicle (EV) adoption rate to 30%, demonstrating a strong commitment to environmentally friendly car alternatives.
Hyundai Transys has created an advanced electric vehicle drive system that combines the motor, inverter, and reduction gear into a single, streamlined unit. Compared to typical systems where these components are installed independently, this integration delivers better power efficiency and more design flexibility. This creative arrangement reduces weight, size, and power dissipation while simultaneously enhancing economy of scale and streamlining the electric vehicle design process.
Hyundai Transys CEO Steve Yeo expressed his excitement over the deal, pointing out that it is the first time their own electric drive technology has been delivered to a major international automaker. He emphasized that this agreement confirms their expertise in powertrain technology, which has been developed over thirty years in the electric car market, being recognized globally.
With this acquisition, Hyundai Transys is strengthening its long-standing expertise in creating transmissions for cars with internal combustion engines and making a strategic shift towards the quickly expanding electric mobility market. The company has been aggressively expanding its line of electrification components, including integrated EV drive units and hybrid electric vehicle drive systems, in an effort to satisfy the growing demand for environmentally friendly transportation options on a global scale.
Steve Yeo went on to say that they are well-positioned to quicken the growth of their electrification component industry because of their unparalleled proficiency in powertrain technology. This covers integrated Electric Drive Systems (EDSs) and hybrid electric vehicle systems globally.
The partnership between Hyundai Transys and Ceer is expected to be essential to the advancement of Saudi Arabia’s bold goals for electric vehicles, as the country aims to reduce its carbon emissions and become a regional leader in sustainable auto manufacturing.
