Mando Corp., a South Korean auto parts maker under Halla Group, is splitting off the autonomous driving business into a separate entity to sharpen its business focus and to improve management efficiency, the company said on Wednesday.
The new entity, tentatively named Mando Mobility Solution (MMS), will concentrate on the advanced driver-assistance systems (ADAS) technology, alongside robotic vehicles and cloud server segments of its mobility business. ADAS refers to electronic systems in a vehicle.
Mando-Hella Electronics Corp., specializing in autonomous driving parts, will belong to the new unit MMS as a wholly owned arm.
"With the split-off, we will establish a governance structure in a way that we can respond promptly to changing market environment and regulations," Mando said in a regulatory filing.
MMS, to be launched on Sept. 1, targets annual average growth of 14% throughout 2025.
The remaining entity will focus on electric vehicle technology, including electrification of chassis systems, EV engines and relevant softwares for annual average growth of 9% through 2025. Mando is also developing charging battery converters for hydrogen-fueled cars.
Mando aims for a combined 9 trillion won ($8.1 billion) in sales from both units in 2025, compared with this year's target of 6.1 trillion won.
Write to Hyung-kyu Kim at
khk@hankyung.comYeonhee Kim edited this article.
