Mando is preparing to start mass production of steer by wire (SbW) component to supply to US electric vehicle startup Canoo, TheElec has learned.
The deal is expected contribute 50 billion won in sales to the South Korean firm.
SbW connects the tires and steering wheel wirelessly. This allows the wheels to be placed more freely within cars compared to the previous mechanically connected system.
Mando was also in talks with another electric vehicle company to supply the component. It was also in talks with Hyundai Motor and Kia.
Canoo will be using the SbW for an electric van in plans to start manufacturing in November.
The company signed a contract production deal with Netherlands’ VDL Nedcar last month.
Mando had signed the contract to supply SbW to Canoo back in 2019.
SbW will be applied to an electric car launching in November 2022 for the first time, a Mando spokesperson said.
Hyundai Mobis also developed SbW but it is considered technologically behind to those of Mando’s.
Mando is supplying more sensors related to autonomous driving and advanced driver assistance system to Hyundai Motor and Kia compared to Hyundai Mobis.
Hyundai Motor was developing a next-generation electric car that utilizes the fact that electric cars don’t have combustible engines and offer a wider space inside the car, a person familiar with the matter said.
Hyundai Motor is doing this as it believes it cannot compete in the electric car market with engine performance and external design alone, they said.
Hyundai Motor and Kia are planning to launch an electric car that uses SbW by 2024.
Mando is targeting 7.4 trillion won in sales from its chassis business, which offers electric car and autonomous driving solutions. The business is targeting 5.2 trillion won in sales this year.