LG Electronics adds $6.1 billion worth to its order book on automotive electronics H1

[Source: LG Electronics Inc.]

LG Electronics has won 8 trillion won ($6.1 billion) worth work in automotive electronics in the first half as the heavily invested segment begins to bear fruit amid faster migration to future mobility.

According to LG Electronics on Tuesday, the orders the company’s VS division added include deals of supplying In-Vehicle Infotainment (IVI) for EVs and 5G-based telematics - vehicle wireless communication systems - to major automakers.

With the addition of 8 trillion won ($6.1 billion) orders, the vehicle electronics segment expects to accumulate 65 trillion won in order backlog by the end of the year.

LG Electronics is expanding its business portfolio by partnering with global auto companies and supplying its P-OLED IVI systems to Mercedes Benz AG and General Motors and its infotainment system to Groupe Renault.

“We will continue to provide unique electronic automotive products based on LG Electronics’ advanced technology,” said Eun Seok-hyun, president of LG’s VS division.

[Source: LG Electronics Inc.]

LG Electronics’ automotive electronics can be divided into VS division’s infotainment systems for vehicles, LG Electronics’ automotive lighting systems subsidiary ZKW’s automotive lights system, and its JV with Canada’s Magna International LG Magna e-Powertrain’s e-powertrain.

The VS division’s infotainment system is largely regarded as the core technology of future mobility. The key products of its infotainment systems are telematics and audio, video, and navigation (AVN). LG Electronics is currently No.1 in the telematics market with a market share of 22.7 percent and it also achieved a double-digit market share in the AVN market.

ZKW Group, acquired by LG in 2018, has clients from all around the world including luxury car brands BMW, Benz, Audi, and Porsche.

[Source: LG Electronics Inc.]

LG Magna e-Powertrain is adding a third manufacturing facility in Mexico following the construction of its production plants in Incheon, Korea and Nanjing, China to produce key car components such as motors and inverters to be installed in GM EVs.

Shares of LG Electronics closed up 5.88 percent to 95,500 won on Tuesday afternoon.

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