Samsung and LG will clash at the Detroit Auto Show in the U.S. next year in order to promote the automotive electronics business which are considered one of future growth engines.
According to industry sources on December 8, the subsidiaries of Samsung and LG groups will participate in the Detroit Auto Show, the world’s largest motor show to be held from January 8 next year.
For Samsung, the auto show will be the first stage that it can show a synergy between Samsung Electronics and Harman. An official from the industry said, “Samsung Electronics will not have a separate exhibition stand, but the company is discussing ways to show its various infotainment devices and solutions at the Harman’s booth.”
Samsung SDI, which has attended the auto show every year from 2014, will also set up its booth next year to expand its customers. The company is now supplying battery cells to global leading automakers, such as BMW, Chrysler, Volkswagen, Bentley, Jaguar Land Rover and Mahindra and Mahindra (M&M).
LG Group plans to open a private showroom jointly run by LG Electronics, LG Chem, LG Display, LG Hausys and LG Innotek and give a product demonstration for its customers only.
LG will unveil various automotive electronics components and solutions ranging from convenient equipment, including lithium battery, powertrain, infotainment system, head-up display (HUD) and lamps, to automotive design. With its brand strategy of “One LG,” the group will seek to create a synergy connected with particularly LG Chem which has 20 major auto making partners.
Industry watchers expect that Samsung and LG will compete to secure the leadership in the automotive electronics market in earnest from this year. Until now, LG, which is about to surpass 6 trillion won (US$5.16 billion) in annual sales in the automotive electronics sector this year, has had an advantage. However, Samsung Electronics has raised its competitiveness at a heat after it decided to acquire Harman which turns over US$7 billion (8.13 trillion won) a year.
According to U.S.-based research firm Strategy Analytics, the global automotive electronics parts market is expected to grow from US$239 billion (277.72 trillion won) in 2015 to US$303.3 billion (352.43 trillion won) in 2020. In particular, the smart car electronics market, which is paid attention by Samsung and LG, will record a 13 percent annual growth on average from US$54.2 billion (62.98 trillion won) last year to US$186.4 billion (216.6 trillion won) in 2025, leading the growth in the entire market.