Samsung chairman Lee Jae-yong has recently visited China on a business trip. During his visit, he met with Xiaomi chairman Lei Jun to discuss a possible collaboration on electric vehicles. Now, a report says Lee also met with Chinese executives at BYD, Chinaโs leading EV manufacturer.
Judging from these visits, we can assume Samsung will soon get serious about the EV industry, and the company wants to expand its automotive business. Partnering up with major Chinese EV players might help Samsung to boost its automotive business.
Samsung chairman visits BYDโs headquarters
According to a report from Korea Joongang Daily, Lee visited BYDโs headquarters in Shenzhen, a city called Chinaโs Silicon Valley โ other tech giants like Alibaba and Huawei also operate here. Lei has visited Beijing before in 2018, and going by official records, this is his second visit.
Samsungโs Lee Jae-yong & BYDโs Wang Chuanfu (Yonhap, EPA) | Via Koreaherald
Chinese EV makers have been recently growing at an exponential rate. In 2023, BYD also surpassed Tesla as the largest EV manufacturer in the world. The company has sold more than 3.02 million vehicles, including electric, hybrid, and hydrogen-powered cars. In comparison, Teslaโs total number of shipments was 1.82 million. BYD has also recently showcased a new EV platform. It is capable of a 400km range with just 5 minutes of charging, which is a major innovation.
The companyโs profits are on the rise as well. The operating profit of BYD is now at 30.04 billion yuan, an 80.07% year-on-year increase. Sales have also grown massively, at 602.3 billion yuan, a 42% rise year-on-year.
We can assume Samsung has begun laying the initial structures for EV part supply and strategic partnerships with Chinese companies. One of the earliest signs was Samsungโs participation in the Beijing Auto Show in April 2024, which was their first time participating, suggesting that the company is serious about selling automotive parts. As per industry speculation, he might also meet Chinaโs president, Xi Jinping.
Samsung has also been focusing on strengthening the automotive sector of its subsidiary, Harman. Harman can now supply digital cockpits, head-up displays, and infotainment systems to major automakers, including BMW and Toyota.
