US private equity group Warburg Pincus has been selected as a preferred bidder for South Korean automotive parts maker Hyundai Autonet, Reuters said, citing the Korea Economic Daily.

The report cited the paper as saying that Warburg Pincus is to buy Hyundai Autonet's 23.42% held by Hynix Semiconductor Co. and another 34.98% owned by Hyundai Investment Trust Securities Co.

Reuters said Hyundai Autonet, which makes car navigation systems and other parts, earned a net 65.2 billion won ($US55.34 million) on sales of 545.4 billion won last year and its market capitalisation reached $508 million.