Global automotive giant sells its automotive lighting business for $443 million.

On September 30, Hyundai Mobis, the core components subsidiary of global automotive giant Hyundai Motor Group, announced that it has signed a final agreement with French parts group OPmobility to sell its entire Luminaire business for KRW 600 billion (approximately USD 443 million). The transaction is expected to close in the second half of 2027, subject to antitrust and regulatory approvals in relevant countries and regions.

This marks the largest M&A deal in the global automotive lighting sector in 2026.

01

DEAL

Transaction Overview: Spin-off First, Then Sale

Hyundai Mobis will first physically spin off its Luminaire business by establishing an independent legal entity, “Hyundai Mobis Lamp.” The scope of the spin-off covers the design, development, testing, production, and sales of passenger car headlamps, tail lamps, and exterior body lights. The spin-off will take effect on April 1, 2027. Upon completion of the spin-off, Mobis will transfer 100% of the new company’s equity to OPmobility.

Notably, after-sales parts supply, distribution, and management for Hyundai and Kia vehicles are excluded from this spin-off and will remain under Mobis’ control.

The employment contracts, seniority, and working conditions of employees associated with the Luminaire business will be transferred en bloc to the newly established company. In March this year, the Gyeongju and Gumi branches of the Korean Metal Workers’ Union held a press conference outside Mobis headquarters to protest the proposed sale; labor-related resistance remains one of the key variables affecting the subsequent closing process.

Mobis and Plastic Omnium signed a memorandum of understanding in January this year and have since engaged in approximately eight months of negotiations regarding the transaction structure and business spin-off. Mobis plans to convene an extraordinary shareholders’ meeting on November 24, 2026, to vote on the spin-off plan, with protective provisions in place: if the amount of shares repurchased by dissenting shareholders exceeds KRW 230 billion, the board may resolve to suspend or withdraw the spin-off.

02

BUYER

OPmobility: A Family Business Expanding Its Reach

OPmobility traces its origins back to Plastic Omnium, founded in France in 1946 as a manufacturer of plastic bumpers and fuel systems, and has been passed down through four generations of family leadership. In 2025, the group reported revenue of EUR 11.5 billion, operating 152 factories and 40 R&D centers across 28 countries, employing approximately 38,100 people, making it one of the world’s largest suppliers of automotive fuel systems and exterior components.

In 2022, Plastic Omnium completed two consecutive acquisitions of lighting assets within a single year: in July, it acquired AMLS, the automotive lighting systems business of ams OSRAM, for EUR 65 million; in October, it purchased Varroc Lighting Systems, part of India’s Varroc Group, for EUR 520 million. Following these transactions, Plastic Omnium established a Lighting Division with annual revenue of approximately EUR 1 billion, around 7,000 employees, and 11 factories, covering the full value chain from light source components to complete luminaires.

In March 2024, Plastic Omnium officially rebranded as OPmobility, signaling its transformation from a plastics component manufacturer into a comprehensive mobility technology group. In February 2025, it merged its Exterior and Lighting divisions into the Exterior & Lighting Division, integrating exterior and lighting systems into a unified platform.

“Once Mobis’ lighting business merges with OPmobility’s existing lighting operations, we will achieve a significant scale-up, creating a leading player in automotive lighting while deepening our partnership with the Hyundai-Kia Group and strengthening our market presence across Asia, North America, and Europe,”

— Félicie Burelle, CEO of OPmobility

03

SELLER

Strategic Trade-offs by Hyundai Mobis

Founded in 1977, Hyundai Mobis originally started as Hyundai Precision, manufacturing shipping containers and railway cars. In the 1990s, it transitioned into automotive electronics and module businesses, and was renamed Hyundai Mobis in 2000, gradually evolving into a core components platform under the Hyundai Motor Group. For many years, Hyundai and Kia vehicles relied on internally supplied lighting components.

From a financial perspective, its Luminaire business is far from being a non-performing asset. In 2025, it reported revenue of KRW 2.5 trillion and positive profits, backed by the top three global automakers and supported by a solid order book. Hyundai Mobis chose to divest at this juncture, driven primarily by strategic realignment at the group level—concentrating resources on future growth areas such as electrification, software-defined vehicles, and autonomous driving. Although the Luminaire business generates stable cash flow, it no longer aligns with the group’s strategic priorities.

Hyundai Mobis stated that this spin-off and sale would not only enhance the specialization and global competitiveness of its Luminaire business but also enable the group to reinvest proceeds into emerging growth sectors, thereby increasing corporate and shareholder value.

04

HISTORY

Thirty Years from Ford to Mobis

1997｜Ford Spins Off Visteon

Ford Motor Company spun off its entire components division, establishing Visteon, with the Luminaire business becoming independent.

2012｜Varroc Takes Over

India’s Varroc Group acquired Visteon’s lighting business, forming Varroc Lighting Systems.

2022｜Plastic Omnium Acquires VLS

Plastic Omnium acquired Varroc Lighting Systems.

2026｜Mobis Sells

Hyundai Mobis and Plastic Omnium signed an agreement to sell the Luminaire business.

During the same period, other notable moves included ams OSRAM selling AMLS in 2022, and Faurecia completing its acquisition of Hella to form the FORVIA Group, integrating its lighting business into a larger consolidated platform.

“Sellers of lighting assets typically share similar characteristics: they are either internal component suppliers tied to OEMs or non-core segments within diversified groups, while buyers tend to be specialized, independent suppliers aiming for scale,”

05

LOGIC

Why Does the Luminaire Business Change Hands So Often?

Internal Supply Models Face Natural Limits

Within the group, luminaire orders remain steady, but customer diversity is limited. R&D and capacity investments are aligned with parent group needs, making it difficult to expand into external markets, thus constraining operational efficiency and independence. Most of Mobis’ Luminaire revenue comes from Hyundai and Kia, mirroring Visteon’s historical reliance on Ford. Such assets represent marginal business for the group, yet offer direct opportunities for scale and capacity expansion for independent suppliers.

Technological Advancements Raise the Bar for Scale

Automotive lighting is undergoing a transformative shift—from halogen and LED to DLP, Micro-LED, and intelligent projection-based interactions—raising the per-vehicle value from hundreds of yuan to tens of thousands of yuan, accompanied by soaring R&D expenditures. In this era of rapid technological iteration, scale and customer breadth become prerequisites for reducing R&D costs, ushering the industry into a phase of “scale competition,” where smaller players face consolidation or exit.

06

IMPACT

Implications for Market Structure and Industry Chain

Competitive Landscape

The global automotive lighting market is highly concentrated, with Koito holding over 20%, Valeo around 17.2%, and Hella approximately 15%. Together, the top five manufacturers account for roughly 70% of the market. With Plastic Omnium’s existing lighting business valued at over EUR 1 billion, combined with Hyundai Mobis’ annual revenue of approximately EUR 1.6 billion, the merged entity will approach EUR 3 billion in scale, leaping from the second tier to the global front rank and directly competing with Marelli and Stanley.

Technological Evolution

This transaction highlights how smart lighting competition has entered a stage of scale-driven rivalry. Significant R&D investments are directed toward DLP, Micro-LED, and projection-based technologies, leaving companies lacking global production capacity and diversified customer bases struggling to sustain themselves independently.

Upstream Supply Chain

As the concentration of finished luminaire assembly increases, customers of light source and component suppliers like ams OSRAM, Nichia, and Seoul Semiconductor will increasingly gravitate toward leading luminaire manufacturers, further tilting the bargaining power balance toward end-product makers.

China Market

Hyundai Mobis’ Chinese lighting plant will be integrated into Plastic Omnium’s China operations following the deal, bolstering the latter’s production capacity and customer channels. However, the dominant forces in the domestic market have already shifted: in 2025, Xingyu Shares and Huayu Vision together accounted for over 40% of the market share, with local brands securing more than 58% of the supply chain, taking early positions in smart products like DLP and Micro-LED. In the short term, this transaction is unlikely to disrupt China’s “two superpowers and multiple strong players” landscape, though post‑closing developments in 2027—specifically whether Hyundai and Kia adjust their vehicle lighting procurement strategies in China—will warrant continued monitoring.

∞

OUTLOOK

Editor’s Note

Whether this transaction succeeds remains uncertain. Antitrust and foreign investment reviews involve multiple jurisdictions, including South Korea, China, the European Union, and Mexico; South Korean labor unions have yet to soften their opposition; and the outcome of the November extraordinary shareholders’ meeting, along with the scale of share repurchases exercised, will directly influence whether the spin-off can proceed as scheduled.

If the deal goes through, Plastic Omnium will gain access to five factories spanning South Korea, China, Mexico, and the Czech Republic, along with approximately EUR 1.6 billion in annual revenue and long-term partnerships with Hyundai and Kia. Its Luminaire business will approach EUR 3 billion in scale, reshaping the competitive landscape of the global automotive lighting industry.

Sources: Official announcements from OPmobility, Yonhap News Agency, Korea Economic Daily, Seoul Economic Daily, Linklaters law firm statements, and publicly available materials from Guangda Securities Research Institute, among others.