Samsung, LG's electric auto parts sales soar despite EV slump


At CES 2024, Samsung Electronics showcased Harman Kardon's Ready Vision QVUE, a cutting-edge automotive augmented reality head-up display that transforms the windshield into a high-quality display. Despite a slowdown in electric vehicle sales, the Korean automotive electric parts sector has been flourishing, leading to significant gains for Samsung Electronics and LG Electronics in the second quarter. This sector encompasses various components crucial to modern vehicles, particularly electric and hybrid models, such as infotainment systems, digital cockpits, and premium car audio systems from brands like Harman Kardon. During the second quarter, Harman, a subsidiary of Samsung, achieved sales of 3.62 trillion won and an operating profit of 320 billion won, representing a substantial improvement from the previous year. Since being acquired by Samsung in 2017, Harman has experienced significant profit growth, with plans to expand its product range and reinforce its market leadership. Similarly, LG Electronics' automotive electric parts business has been thriving, driven by a stable portfolio and strong order volume from electric and traditional vehicles. In the second quarter, its Vehicle Component Solutions division reported solid sales of 269.9 billion won and a record-breaking operating profit of 81.7 billion won. With ambitious plans to reach 20 trillion won in sales by 2030, LG's automotive electric parts operations focus on infotainment, electric vehicle powertrains, and automotive lighting systems. Despite the current EV slump, LG anticipates continued growth in high single digits compared to last year, fueled by steady sales in infotainment systems and increased demand for premium auto parts.


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