Excellent AMS Co., Ltd... Selected for Business Restructuring, Transitioning to Electric Vehicle Sector with Government Support

Excellent AMS Co., Ltd. (066590), a specialized company manufacturing automobile transmissions and engine parts, announced that it has achieved the great success of being selected as a ‘Ministry of Trade, Industry and Energy (MOTIE) Business Restructuring Plan Target Company’ by expanding its business area to include driving modules for ultra-small electric vehicles and general electric vehicles.

At the final review committee chaired by Deputy Minister Jeong Seung-il of MOTIE, a total of 15 business restructuring plans were reviewed and approved, including 16 types of new industry entry in the eco-friendly vehicle sector. This applies the Special Act on Corporate Vitality Enhancement (One-Shot Act), under which the companies receive various tax benefits as well as special regulatory exceptions and exemptions from the Commercial Act, Fair Trade Act, and other regulations.

In particular, the company was recommended as a support target for the ‘Innovative Companies National Representative 1000’ project, which invests 40 trillion KRW over three years in innovative companies. Additionally, starting next year, new support will be provided for new industry entry, including 10 billion KRW for exclusive research and development (R&D) for business restructuring approved companies and 2 billion KRW for early commercialization of new industries.

The ‘Industrial Ecosystem Co-prosperity Business Restructuring,’ which selects innovation themes of high industrial policy importance and actively discovers demand from related corporate groups, was introduced for the first time. Accordingly, as the first theme, five automobile parts companies including Excellent AMS Co., Ltd., which is undergoing industrial restructuring from internal combustion engine vehicles to eco-friendly vehicles, were approved and will receive active support.

Currently, Excellent AMS Co., Ltd. has independently developed and commercialized driving modules and systems for ultra-small electric vehicles through its subsidiary Excellent TMM, and is recently promoting the establishment of a factory for the production of core electric vehicle parts.

In June of this year, the company signed a Memorandum of Understanding (MOU) with Ulsan Metropolitan City for the ultra-small electric vehicle business, delivered demonstration vehicles, and received certification for its technological capabilities. The vehicles were manufactured with over 85% localization rate, and the integrated driving module (motor + inverter) is praised for its improved efficiency based on proprietary power design.

An official stated, “We currently plan to expand our business area not only to ultra-small electric vehicles but also to driving modules (motor, inverter, reducer) for general electric vehicles. Recently, we signed a supply contract for driving modules for electric three-wheelers for export to Southeast Asia and are actively conducting sales activities with domestic electric vehicle companies.”

Meanwhile, as the electric vehicle era and the continuous increase in sales of ultra-small electric vehicles are expected as new growth areas for the future of the automobile industry, Excellent AMS Co., Ltd. is attracting expectations for sales growth through continuous research and development and marketing strategies for not only complete vehicles but also driving modules and systems.