BYD E6 car - blue (front)

Samsung in discussions to buy stake in BYD

Samsung is looking to acquire a stake in BYD, which is the biggest – in terms of sales volume – producer of hybrid and battery-powered cars in the world. The Chinese car manufacturer has confirmed that Samsung is ‘actively’ taking part in its current fundraising round.

BYD’s ‘new energy vehicles’ have been performing extremely well, with sales tripling last year. The figures are even better than those from the much-hyped Tesla, when it comes to the amount of vehicles sold.

It is unlikely that Samsung is planning to take on the likes of Tesla and Nissan directly. Instead, the South Korean company is believed to be planning on expanding its supply of chips, and other components, to the industry.

Shawn Kim, an analyst at Morgan Stanley, has said that Samsung may be looking to become a much bigger supplier to the electric vehicle market, by growing in areas where it already has significant technological strength.

“This may indicate Samsung Electronics’ ambitions to actively participate in the EV component supply chain,” Kim said. “We see significant long-term growth opportunities that could benefit its semiconductors and consumer electronics divisions.”

There has been increased cooperation between Google and a number of car manufacturers in recent times, with Android Auto now available in a range of models from Skoda, VW, Honda, Hyundai, Kia, Opel/Vauxhall and Chevrolet.

In addition to items such as chips, batteries and displays, Samsung could also develop in-car entertainment systems based around its Tizen operating system.

[via Financial Times]