Hyundai Transys has won a mega contract to supply its independently developed integrated electric vehicle drive system (EDS) to Ceer, Saudi Arabia’s first electric vehicle brand. The contract, signed earlier this month, at the Hyundai Transys headquarters in Dongtan-myeon, Gyeonggi-do, Korea, is worth KRW 3 trillion (US$ 2.2 billion or Rs 180,540 crore).
Ceer is an EV manufacturer established by Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF) in November 2022. Ceer will be the first Saudi automotive brand to produce EVs in Saudi Arabia, and will design, manufacture and sell a range of vehicles for consumers in Saudi Arabia and the MENA region, including sedans and sports utility vehicles.
The Saudi Arabian government is pursuing the production of 500,000 EVs annually by 2030. It is known that Saudi Arabia aims to increase the EV penetration rate in its capital, Riyadh, to 30%. In addition, only EVs will be allowed to operate in NEOM, which is scheduled to be completed in 2030.
The signing ceremony was attended by key executives, including Hyundai Transys CEO Steve Yeo, Ceer CEO James DeLuca, Ceer Chief Purchasing Officer (CPO) Johnny Saldanha and Ceer Chief Technical Officer (CTO) Markus Leitner.
Hyundai Transys’ integrated EDS is a three-in-one system that consists of a motor required to drive the EV, an inverter that converts power to control the motor’s torque, and a reduction gear that converts and transmits power into the torque and speed required for the vehicle.
Typical EDSs are made up of separate motors, inverters, and reduction gears, resulting in power loss between connecting cables and limitations in vehicle space configuration. However, Hyundai Transys’ integrated EDS reduces size and weight and boasts excellent power efficiency, making it easier to design EVs and improving cost competitiveness.
First EDC supply contract from a global automaker
This contract marks the first time Hyundai Transys will supply an EDS to a global automaker. The deal holds even greater significance as it demonstrates that the company’s competitiveness in the powertrain field, developed with over 30 years of accumulated technology, has been recognized in the global market not only for internal combustion engine (ICE) vehicles but also for hybrid and battery EVs (HEVs/BEVs) in this era of growing electrification.
Hyundai Transys produces a full lineup of transmissions for internal combustion engines, including automatic, manual, dual-clutch, and continuously variables. The company has also established itself as the leading future mobility firm that produces key electrification components, including hybrid drive systems, EV reduction gears, and integrated EDSs.
Steve Yeo, CEO of Hyundai Transys, said: “Based on our unrivalled technological prowess in powertrain technology, we will further accelerate the expansion of our electrification component business, such as hybrid electric vehicle drive systems and integrated EDSs, in the global market.”