Luxshare Precision: A Further Step from Tier 2 to Tier 1 Automotive Supplier

HONG KONG, Sept 21, 2023 - ( JCN Newswire ) - Luxshare Precision released its 2023 interim report last month, revealing that total revenue rose by 19.53% to RMB97,971 million. The net profit after the deduction of non-recurring profit and loss attributable to ordinary shareholders increased by 22.48% to RMB4,154 million. Among them, the operating revenue of the automotive business soared by 51.89% to RMB3,207 million, showing its strong growth momentum.


According to the data from the China Association of Automobile Manufacturers and Askci Research, automotive electronics has become the fastest-growing segment of electronic systems in China in recent years, with a CAGR of 12.54% from 2017 to 2023, estimated to reach RMB1,097.3 billion in 2023. Luxshare's latest conference call also noted that its automotive Tier 1 business will continue to grow in the next two years and is expected to enjoy explosive growth in 2025 and afterwards.


As early as 2008, Luxshare Precision entered the automotive industry as a Tier 2 supplier. With more than a decade solid experience, it now possesses comprehensive product capabilities and reserves, such as automotive harnesses, connectors and intelligent driving, as well as providing customers with high-value product services. According to research reports, the current major product lines in the automotive sector of Luxshare have a per-vehicle value ranging from RMB10,000 to RMB40,000, making it a comprehensive supplier of leading automotive parts and modules in China.


Compared with other suppliers in market, Luxshare has advantages in response speed and cost control based on its proven track record in consumer electronics experience. Meanwhile, its primary connector and harness products have also achieved remarkable results. Currently, Luxshare has become a comprehensive supplier that integrates the design, validation, and manufacturing of complete low-voltage and high-voltage vehicle harnesses, specialized harnesses and charging gun, developed a wide range of connectors for use in vehicles, including low-voltage, high-voltage and high-speed connectors.


It is known that Luxshare entered the intelligent driving field under the in-vehicle network trends to be a Tier-1 supplier of automotive parts worldwide, with integrated driving and parking solutions as one of its main focuses. Recently, Luxshare launched the second-generation single system-on-a-chip (SOC) integrated driving and parking domain controller DAC1.1, successfully entering the affordable integrated driving and parking market and expanding its technology to a broader range of budget-friendly vehicle models.


It is indeed that Luxshare's cooperation with auto manufacturers has become increasingly close in recent years.


Tracing its developing route, in February 2022, Luxshare reached strategic cooperation with Chery Automobile and intends to form a joint venture to provide cutting-edge research and development design, mass production platforms, and overseas markets for Luxshare's core automotive components business; In October 2022, Luxshare Precision Industrial and Huawei were granted a patent for a "high-speed automotive connector component", which could improve the stability of connections in high-speed automotive connector components; In June 2023, Luxshare joined forces with GAC group to establish a subsidiary company. In August 2023, Luxeed's first official image was released, jointly developed by Huawei and Chery. Luxshare is expected to be essential in Huawei's cooperation through Chery.


The above actions demonstrate that Luxshare continuously expands its influence in the automotive market. It can be anticipated that Luxshare will be seen behind more new automobile models in the future, in addition to the current collaborations with Chery, Huawei and GAC Group.


Overall, Luxshare is gradually growing and strengthening its presence in the automotive industry, relying on its excellent reputation in the consumer electronics field, strong product development capabilities, outstanding manufacturing capabilities and excellent cost control. It is believed that Luxshare would bring more empowerment to the automotive industry during the process of being a leading Tier 1 supplier.