Eyeing the huge market potential brought by the rapid growth of intelligent connected vehicles, a major Chinese electronics manufacturer is accelerating its expansion in the global automotive components sector to get ahead of the curve.

"We are fully committed to seizing the high ground in new energy vehicle intelligence and keeping pace with industry developments and emerging industry trends to maintain steady growth in the global automotive market," said Wang Laichun, a member of the 14th National Committee of the Chinese People's Political Consultative Conference and chairwoman and founder of electronics manufacturer Luxshare Precision Industry Co Ltd.

Luxshare's long-term goal is to become a global top-tier automotive component supplier within the next five years, Wang said, adding that the company's foray into the automotive sector for over a decade has seen cheerful results.

"Today, we have successfully built a diversified product portfolio covering cable harnesses, connectors, intelligent driving systems and smart cockpits, with deep and solid partnerships with our clients," she said.

The vision aligns with the country's national strategy to integrate digital technologies with manufacturing prowess, as highlighted in this year's Government Work Report, released during the two sessions, which underscored the vigorous development of intelligent connected NEVs and next-generation intelligent terminals.

According to market consultancy Allied Market Research, the global connected car market size was valued at $115.8 billion in 2023 and is projected to reach $501.8 billion by 2033, with a compound annual growth rate of 16.5 percent from 2024-33.

While consumer electronics still remain Luxshare's primary revenue driver, accounting for over 80 percent of total revenue, the automotive sector has emerged as its fastest-growing business segment. From 2019-23, the company's revenue in the segment surged from 2.36 billion yuan ($324.9 million) to 9.25 billion yuan, showing robust growth momentum.

In this regard, Wang said the production of automotive components has distinct regional characteristics, prompting the company to implement a globalized manufacturing strategy to ensure efficient responses to customer needs.

The comment came as Luxshare launched an NEV electronic components manufacturing industrial park project in Handan, Hebei province, at the end of last year, with a total planned investment of 7.8 billion yuan. The project will focus on the R&D and production of NEV connection system components and, once fully operational, will serve as a key intelligent manufacturing base in North China, the company said.

Prior to that, Luxshare announced that it would establish a new acoustics electronics and automotive components project in Suzhou, Jiangsu province, marking the establishment of its largest automotive parts manufacturing base in China.

On the global front, Luxshare took a significant step in September by acquiring a 50.1 percent stake in German automotive cable harness manufacturer Leoni AG, along with full ownership of its subsidiary Leoni Kabel GmbH.

"The acquisition marks another major step forward in our globalization efforts," Wang said, adding that the company plans to leverage Leoni's technological expertise and localized operations to extend its customer base from top domestic automakers to major global brands.

As artificial intelligence-powered technologies continue to shape the future, Wang emphasized that these advancements also provide unprecedented opportunities for the manufacturing sector, facilitating smart production upgrades, improving supply chain resilience and accelerating product innovation.

"AI's rapid evolution has created new business opportunities, and what stands out to me the most is its role in enabling lean and intelligent manufacturing," she said.

"As AI technology continues to be integrated into consumer terminals, I believe there lies significant business and commercial potential," Wang added. She emphasized that the company will capitalize on its unique advantages in flexible automation, foundational technology innovation, process optimization and vertical integration to embrace AI-driven market demand.

"We will fully utilize our diversified product portfolio, robust precision and intelligent manufacturing capabilities, and solid technological foundation to achieve business breakthroughs across multiple categories and clients," Wang said.