3 Billion! Another Industry Giant Sells Its Automotive Lighting Business! The Global LED Automotive Lighting Landscape Is Shifting

Recently, South Korean parts giant Hyundai Mobis announced that it has signed a final agreement with French automotive components group OPmobility to sell its 100% stake in the automotive lighting business, at an enterprise value of approximately KRW 600 billion (about EUR 390 million or RMB 3 billion).

01 WHY SELL

Why is Hyundai Mobis selling?

The subject of this transaction is Hyundai Mobis’ lighting division, namely its automotive lighting business. This unit focuses on the R&D and production of LED headlights, taillights, and intelligent lighting systems. Financial data shows that in 2025, this business generated KRW 2.5 trillion (about EUR 1.6 billion or RMB 12.5 billion) in revenue, with a positive operating margin, making it a high-quality asset that consistently contributes stable earnings. In terms of production footprint, it operates five plants across South Korea, China, Mexico, and the Czech Republic.

Why sell a profitable automotive lighting business? Hyundai Mobis’ core rationale is strategic prioritization, concentrating resources on high-value-added areas. The company explains this move using the principle of “selection and concentration”: on one hand, transferring the lighting business to a specialized team will enhance its competitiveness; on the other hand, it allows Mobis to focus resources on emerging growth sectors and future core businesses (electrification, SDV software-defined vehicles, autonomous driving, etc.), thereby increasing corporate and shareholder value.

From a supply chain perspective, the automotive lighting business has long been tied to model iterations from Hyundai and Kia, leaving limited room for customer diversification. As smart headlights enter the ADB/DLP/Micro-LED stage, amortization pressure per model increases, while price competition among domestic and international suppliers continues to compress gross margins on traditional luminaires. This makes “profitable but non-core” assets the first to be placed on the chopping block during group portfolio optimization.

Under the plan, Hyundai Mobis will first spin off its automotive lighting business into an independent legal entity, with the spin-off effective as of April 1, 2027. Upon completion of the spin-off, Mobis will then transfer 100% of the new company’s equity to OPmobility.

Notably, aftermarket parts supply for Hyundai and Kia models is excluded from the spin-off and will remain under Mobis’ control—preserving a relatively stable pool of aftermarket profits.

Looking back at the negotiation process, as early as January this year, both parties signed a memorandum of understanding regarding the transfer of the lighting business, followed by eight months of negotiations to finalize the transaction structure and spin-off plan.

Previously, Hyundai Mobis faced union strikes and protests from its subsidiary when it announced plans to sell its automotive lighting division. Labor disputes related to employee job security and continuity of seniority remain variables requiring ongoing attention during post-closing integration.

This transaction is expected to complete final closing in the second half of 2027. Prior to that, it still requires antitrust review and approval from relevant regulatory authorities.

Hyundai Mobis’ HLED light source

02 WHY BUY

Why is OPmobility acquiring?

For France’s OPmobility Group, this acquisition represents a crucial step toward strengthening its lighting segment and expanding its global scale.

OPmobility stated that upon completion of the acquisition, its lighting business will see further expansion across operational scale, technological reserves, customer coverage, and global operational footprint. Integrating these operations into the group framework will serve as a key initiative to boost the performance of existing lighting businesses. At the same time, this deal aligns with OPmobility’s strategic direction of advancing diversified development, bringing benefits to the group across product portfolios, customer resources, and regional market deployments, while reinforcing its competitiveness in the rapidly evolving mobility sector.

Its ambitions in lighting have been building for some time. In 2022, OPmobility made two major acquisitions within a single year: in July, it acquired ams OSRAM’s Automotive Lighting Systems (AMLS) business for approximately EUR 65 million, and in October, it purchased Varroc Lighting Systems (VLS), part of India’s Varroc Group, for about EUR 520 million. These two deals enabled OPmobility to establish a lighting division covering the entire value chain from “light source components to complete lamp assemblies.”

In March 2024, Plastic Omnium officially rebranded as OPmobility, signaling its transformation from a plastic parts manufacturer into a comprehensive mobility technology group.

Following the merger of both companies’ lighting businesses, they will create a leading enterprise in the automotive lighting market… More importantly, this will further deepen our partnership with Hyundai-Kia. This transaction is fully aligned with our strategy of technological leadership, geographic expansion, and customer diversification.

—— CEO of OPmobility 

Félicie Burelle

Public records show that OPmobility Group was founded in 1946 and is headquartered in Paris, France. It is a global player in sustainable mobility, with business spanning exterior and lighting systems, complex module integration, clean energy and power batteries, and hydrogen storage systems. The group has long embraced innovation-driven growth, committed to creating value for the global automotive industry. In 2024, the group’s sales exceeded EUR 11.6 billion, with 38,900 employees worldwide, 152 factories, and 40 R&D centers.

For OPmobility, this is a pivotal leap toward becoming a leader in automotive lighting; for the entire industry, it is yet another illustration of how “the strong get stronger.”