LG Electronics' vehicle components division set to start mass producing core parts for General Motors' (GM) plug-in hybrid Chevrolet Bolt by the end of this month. The company recently established production lines at its Incheon research center to make 11 core components for the GM electric vehicle (EV) - including motors, inverters and various infotainment systems.

Despite some major contracts with global automakers including GM, LG's division is yet to post a meaningful surplus. The VC division had a 16.8 billion won ($15.23 million) operating loss in the second quarter.

But the company remains optimistic about its new growth engine, after sales in the first half of the year skyrocketed 47.9 percent compared with a year ago to 1.23 trillion.

Park Kyung-ryul, vice president of LG Electronics' VC division, told investors in a second-quarter conference call that the auto parts business requires a long time for operators to achieve stable profitability due to industry-specific characteristics.

LG Electronics plans to invest up to 400 billion won in the VC unit this year. Last month, the company said in a regulatory filing that LG and GM signed a partnership deal in October 2015 for LG to mass-produce parts for the Bolt for six years, starting this month.