Luxshare Precision, GAC Group set up auto technology joint venture

Shanghai (Gasgoo)- Recent disclosures from Chinese corporate database Qichacha revealed the establishment of Lisheng Auto Tech (Guangzhou) Co., Ltd., under the legal representation of Wen Jun, with a registered capital of 500 million yuan.

The scope of the new company's operations encompasses auto parts R&D, manufacturing of intelligent vehicle devices, IoT (Internet of Things) equipment manufacturing and sales, as well as integrated circuit chip design and services.

Significant shareholders of the company include Luxshare Precision, GAC Group, GAC Component Co., Ltd., and Guangzhou LiSheng Enterprise Management Consulting Partnership (Limited Partnership). In the breakdown, Luxshare Precision holds 45% of the shares, while GAC Group and GAC Component together account for another 45%.

Photo credit: Luxshare Precision

Luxshare Precision's journey into the auto electronics business can be traced back to 2011. Owing to its strategic positioning over the years, Luxshare Precision now boasts a product line that includes automotive wire harnesses, connectors, intelligent new energy vehicle components (like PDU, BDU, inverters, and energy storage), smart connectivity, intelligent cockpit/control systems. The company's portfolio extends from parts, modules, and subsystems to complete system solutions.

Delving further into their history, Luxshare Precision set up its auto business division in 2011, leveraging its expertise in wire harnesses and connectors to gain a foothold in the automotive industry.

At the end of 2020, Luxshare Precision launched an intelligent driving product line and established Lisheng Intelligent Technology (Shanghai) Co., Ltd in early 2021, aiming to develop intelligent driving systems for mass production. Known for developing high-performance intelligent driving sensors and controllers, including integrated intelligent front-end machines, long- and short-range millimeter-wave radar, intelligent driving domain controllers, and high-computing platforms, Luxshare had by 2022 successfully mass-produced the first generation of these product types in many leading automobile manufacturers' primary vehicle models.

February 2022 marked another significant milestone when Luxshare Precision announced its joint venture with Chery New Energy, an alliance that sent shockwaves throughout the industry. The venture aimed at researching and manufacturing new energy vehicles. The same month, Luxshare Precision announced the plan for a massive fixed-increase of up to 13.5 billion yuan to further invest in its automotive business. The plan included the investment of 1.5 billion yuan to build a new energy vehicle high-voltage connection system production line and 500 million yuan to construct an intelligent car connection system production line.

In October of the same year, the Luxshare Precision Automotive Electronics Industrial Park project - the Phase I project of Luxshare Precision Macheng Base was officially put into operation. The project mainly engages in the R&D, production, and sales of automotive wire harness products.

In May 2023, Luxshare Precision's investor relations activity records show that the company is in good cooperation with Chery Automobile on Tier 1 projects, with targeted projects underway in Chery and other relevant car companies. Luxshare Precision stresses that at the current stage, the company will concentrate more resources on Tier 1 projects.