A driverless car made by Google.
The new division will reportedly operate independently of other Samsung divisions and "develop automotive-related businesses."
In a statement seen by Reuters, Samsung said the team will grow sales of car components, with an initial focus on in-car entertainment, satellite navigation and autonomous driving technologies.
Samsung did not say how many people would be in the new team.
The move suggests the South Korean tech giant is looking to diversify its profits as sales across its smartphone business continue to decline.
Earlier this year it was reported that LG would be providing electronic components to General Motor's electric car, the Chevrolet Bolt EV, which is yet to be released.
The market for automotive components, software and services could worth around $500 billion (£332 billion), according to figures cited in the Reuters article.
Google, Apple, Tesla, Daimler, and Volvo have all been tipped to dominate the driverless car industry in coming years.