Jo Ju-wan, President of LG Electronics, "Accelerating the Automotive Components Business"... Forecasting 10 Trillion Won in Sales

CES 2023 Press Conference

[Asia Economy Reporter Park Sun-mi] "LG Electronics' automotive components business has turned profitable for the first time in 10 years, and now it only remains to get on the highway and step on the accelerator."

On the 6th (local time), at a press conference held in Las Vegas, USA, where CES 2023 took place, LG Electronics CEO Cho Joo-wan expressed high expectations for LG Electronics' automotive components business. CEO Cho said, "The automotive components business recorded consecutive profits in the 2nd, 3rd, and 4th quarters last year, and it is expected to turn profitable for the first time in 10 years on an annual basis in 2022," adding, "This year, we expect automotive components sales to exceed 10 trillion won."

Attending the press conference together, Eun Seok-hyun, Vice President and Head of the VS Business Division, said, "Automotive components account for about 10% of total sales," and added, "Based on an order backlog of 80 trillion won, we expect sales to exceed 15 trillion won by around 2025, and once it surpasses 20 trillion won, we believe LG Electronics will become a meaningful player in the automotive industry." He continued, "We also see opportunities to create additional business with LG Magna," and said, "We are currently developing and producing powertrains with LG Magna, and we have decided to proceed with advanced development by combining the in-vehicle infotainment system we are working on with the controllers that Magna excels at."

LG Electronics' automotive components business is showing results from continuous investments over the past 10 years, including strengthening core software and preparing future technologies. As of the end of last year, the order backlog amounting to 80 trillion won is a figure that demonstrates LG Electronics' strong global competitiveness in the automotive components business. LG Electronics is preparing next-generation IVI (In-Vehicle Infotainment) solutions based on software that integrates in-vehicle infotainment systems, and electric vehicle drive components supplied to global automakers have entered mass production, achieving economies of scale. From this year, the automotive components business is expected to enter a full-fledged growth phase.

Furthermore, LG Electronics is expanding its portfolio to include charging solutions by acquiring a specialized electric vehicle charger company and establishing a production line within LG Digital Park in Pyeongtaek, Gyeonggi Province. LG Electronics plans to provide integrated solutions covering both software areas such as control and hardware areas including charger development and production in the electric vehicle charging business.