Car Cable
LS Cable & System (LS C&S) will provide parts for eco-friendly vehicles to China’s second largest automaker Dongfeng Motor. As the company was selected as the primary partner in the Chinese complete vehicle market, which has high entry barriers, it took the advantageous position targeting the Chinese electric vehicle market in the future.
As the primary partner of China’s Dongfeng Motor, LS C&S announced on April 15 that it would provide high-voltage harness cables for eco-friendly vehicles. The company will mass produce the cables at its Chinese subsidiary in Wuxi, Jiangsu, China, and they will be used for Dongfeng's E30 electric vehicle from next month.
Harness cables connect a car's electronic control system to the communication module and supply power to operate sensors. In particular, harness cables for electric vehicles feature a rating voltage of 600 V, which is much higher than general cars.
An official from LS C&S said, “The company was chosen as the primary partner of Dongfeng Motor over the existing Chinese harness cables supplier to its E30 electric vehicle. This is the first time to become the primary partner of one of the major automobile companies in China.”
Through this, its Chinese subsidiary in Wuxi has positioned itself as an essential foreign branch that has accomplished a surplus for five years in a row due to the sales increase of auto cables.
The Chinese state-run carmaker Dongfeng Motor was founded in 1969 in Wuhan, Hubei province. It is also the second-largest Chinese complete vehicle maker with assets of 25 trillion won (US$22.8 billion) and 140,000 employees. Keeping pace with the Chinese government’s policy to promote the eco-friendly car industry, the company is strengthening the electric car business, including the development of more vehicles and the start of an electric taxi business in Wuhan, by additionally establishing new, specialized company.
With the selection of the primary partner of Dongfeng Motor, LS C&S expects to supply harness cables for more than 100,000 vehicles by 2020. The company estimates that its sales will be doubled to more than 20 billion won (US$18.24 million) this year.