[Edaily Reporter Shin Ha-yeon] Mobility parts specialist #DYP is accelerating its expansion into the North American market after being selected as the piston supplier for Volkswagen Mexico’s next-generation EREV (Extended Range Electric Vehicle) engine project.

DWP announced on the 10th that its subsidiary, Dong Yang Piston Mexico, has been selected as the piston supplier for Volkswagen Mexico’s ‘EA211 REX’ engine project.

The pistons for this order will be produced at a local factory in Mexico and supplied to Volkswagen Mexico’s Silao engine plant. The company expects this contract to generate approximately 48 billion won in revenue over a six-year period starting in the second half of 2028.

The EA211 is the Volkswagen Group’s flagship small gasoline engine platform and is widely used in the global market. This project involves an EA211-based EREV engine program, which is regarded as a transitional electrification solution combining an electric vehicle with an internal combustion engine.

The industry anticipates that demand for related components will continue to grow as global automakers push to expand the EREV market alongside battery electric vehicles (BEVs).

DWP has accumulated technical expertise by supplying pistons to global automakers, including Hyundai and Kia, and has recently been strengthening its push into the North American market centered on its production base in Mexico. In particular, by securing major global OEM customers—including GM, Ford, and now Volkswagen—the company is expected to further solidify its position in the North and Central American markets.

The company views this order as further recognition of its local production capabilities and quality competitiveness by global automakers. It plans to use this as an opportunity to expand its collaboration with the Volkswagen Group while securing new growth engines during the transition to electrification.

A DWP official stated, “By securing consecutive orders from major global automakers—including GM, Ford, and now Volkswagen—we have demonstrated our technological capabilities and quality competitiveness,” adding, “This project is also significant as it marks our first collaboration in the EREV engine sector.”

The official added, “Based on our production hub in Mexico, we are continuing to diversify our customer base in the North and Latin American markets, and we plan to further strengthen our foundation for mid- to long-term growth by expanding cooperation with global automakers.”