Daedong Group's powertrain specialist Daedong Gear announced on the 18th that it has signed a supply contract for core gear module products for next-generation electric vehicles (EVs) and extended-range electric vehicles (EREVs) with Hyundai Transys.
The supply period is from 2025 to 2032, and the expected supply volume is 146.1 billion won. This is a large order accounting for about 63% of Daedong Gear's annual standalone sales in 2024. Actual sales will be recognized from the moment purchase orders (POs) are issued.
The products ordered this time include the carrier and differential modules of an electronic all-wheel drive system, output gear sub-modules for next-generation EREVs, and input gear sub-modules. These parts are critical components of the electric vehicle drive shaft, serving to accurately transmit the power of the drive motor to each wheel. Daedong Gear plans to supply key parts by applying precision gear grinding methods to reduce electric vehicle noise.
Among the ordered items, the carrier and differential modules have been derived from the manufacturing capabilities of existing EV platform products to the EREV platform, reflecting Daedong Gear's scalable production facilities and development capabilities. Having secured various electric vehicle modules last year and established related facilities, Daedong Gear anticipates that such derived order opportunities will continue to increase.
Last year alone, Daedong Gear secured supply contracts worth a total of 1.4234 trillion won for hybrid and electric vehicle parts. Including this contract, it holds an order backlog of approximately 1.5695 trillion won. While the electric vehicle industry is experiencing a chasm (temporary demand slowdown), Daedong Gear continues to be recognized for its technological prowess and is achieving meaningful order records.
Daedong Gear plans to expand its technological base across electrified powertrains including EVs, EREVs, and plug-in hybrid electric vehicles (PHEVs). Additionally, through continuous quality innovation and advanced mass production systems, it aims to broaden the scope of collaboration with major finished vehicle manufacturers, further strengthening its position as a key supplier of core components for next-generation mobility.
Seo Jong-hwan, CEO of Daedong Gear, noted, “This order reflects the recognition and trust from our clients regarding Daedong Gear's powertrain technology and quality capabilities accumulated over many years.” He added, “As a core component supplier leading the electrification era, we will continuously strive to exceed customer demands with our products and solutions.”