Hyundai Transys to export EV drive systems to CEER

Hyundai Transys Inc., an auto parts affiliate of Hyundai Motor Group, announced on Wednesday that it signed a contract to supply a 3 trillion won ($2.18 billion) integrated Electric Drive Unit (EDU) to Saudi Arabia's first electric vehicle (EV) manufacturer CEER from 2027 in 10 years.

CEER, established by the Saudi Public Investment Fund (PIF) in 2022, aims to produce 500,000 EVs annually by 2030, boosting the EV adoption rate in Riyadh to 30%.

The integrated EDU of Hyundai Transys will be installed in all models of CEER's next-generation vehicles, including SUVs, sedans, and coupes.

It combines the motor, inverter—which controls the torque of the motor by converting electric power—and the reduction gear, which transmits the power to the vehicle at the necessary torque and speed, into one unit.

Unlike conventional electric drive systems, which install the motor, inverter, and reduction gears separately and face limitations in power loss through connecting cables and vehicle space configuration, the integrated EDU reduces size and weight while improving power efficiency.

This enhances the design ease and cost competitiveness of EVs, Hyundai Transys explained.

Hyundai Transys stated that this contract marks the first instance of supplying its proprietary electric drive system to a global automotive company.

Write to Jin-Won Kim at jin1@hankyung.com