Daedong Gear to Complete EV Component Mass Production Preparations This Year... Revenue Generation to Begin Next Year

Over 80% Completion Rate Achieved for 20 New Production Lines for Mass Production of EV Components

Daedong Gear, a powertrain specialist under the Daedong Group, announced on July 9 that it will complete preparations for mass production of core electric vehicle (EV/HEV) components ordered between 2024 and 2025 within this year, and will begin generating full-scale revenue from EV components starting next year.

Daedong Gear is currently in the final stages of preparing for mass production to convert its order backlog into revenue. The company is establishing a total of 20 new production lines to manufacture EV components for Hyundai Motor and Hyundai Transys, among others. As of last month, the construction progress rate had reached the 80% range. Accordingly, the company expects that EV component sales, which reached 12 billion won in the first half of this year and are projected to total around 27 billion won for the entire year, will grow nearly threefold to at least 75 billion won next year.

Daedong Gear Plant 1

According to Daedong Gear, the automotive parts industry enters mass production after going through product development, production facility setup, quality verification, and customer approval procedures following project orders from customers. After this, the company typically supplies the components for seven to ten years. While revenue is generated according to the order volume from customers, a single project order leads to a long-term supply relationship, providing a stable business foundation. The company's order backlog of 1.892 trillion won secured since 2024 is also expected to serve as the foundation supporting Daedong Gear's mid- to long-term revenue growth under this long-term supply structure.

In the first half of this year alone, Daedong Gear achieved new orders totaling 262.8 billion won across key sectors such as EVs, agricultural machinery, and construction equipment. This amount is approximately 119% of last year's annual revenue. Breaking it down, the company secured 138.5 billion won in EV component orders from Hyundai Transys, 71.8 billion won in tractor gearbox orders from the world's third-largest global agricultural machinery company, and 52.5 billion won in final drive orders for small excavators from a leading domestic construction equipment parts company, thereby establishing a well-balanced order portfolio across electrification, agricultural machinery, and construction equipment.

Based on this, Daedong Gear is targeting sales of 270 billion won this year, which would represent double-digit growth compared to last year, and aims for at least 500 billion won in new orders annually. Jonghwan Seo, CEO of Daedong Gear, said, “We have completed the foundation that enables us to convert the EV component projects we have secured over the past two years of focused mass production preparations into tangible revenue and profits,” adding, “We will steadily execute our growth roadmap, which leads to full-scale EV revenue by 2027, and solidify our position as a future-oriented specialist in drivetrain components.”

This content was produced with the assistance of AI translation services.