LG secures W8tr in automotive parts orders in H1

LG Electronics said Tuesday its automotive parts business has secured new orders worth 8 trillion won ($6.16 billion) in the first half of this year, with the total cumulative orders set to exceed 65 trillion won by the end of this year.

The company said its Vehicle Component Solution unit has recently signed a series of new deals with global carmakers to supply its in-vehicle infotainment systems and 5G telematics solutions.

The Korean tech giant is looking to beef up its competitiveness in the future mobility sector with three main pillars – infotainment, powertrains and automotive lighting systems.

The VS unit is specialized in developing in-car infotainment systems such as telematics and AVN or audio, video and navigation solutions, while its two affiliates ZKW and LG Magna e-Powertrain are specialists in the fields of automotive lighting systems and powertrains for electric vehicles, respectively.

Last year, LG posted 6.7 trillion won in automotive parts sales, up 24 percent from a year ago. The company touted the figure a “solid growth” considering global carmakers are hit by production constraints due to chip shortages.

According to market tracker Strategy Analytics, LG took up the largest 22.7 percent of global telematics sales in the first quarter this year. 

In recent years, LG has supplied its infotainment systems to a slew of carmakers, including Mercedes-Benz, Renault and General Motors. Clients for ZKW’s lighting systems include BMW, Mercedes-Benz, Audi and Porsche.

LG Magna, a joint venture set up last with Canadian auto parts maker Magna International, is expanding its global production network. Following its production facilities in South Korea and China, the firm has recently started construction of a new parts plant in Mexico.

“We will continue to offer differentiated values to our corporate clients through our technological prowess in the key automotive parts sectors,” said Eun Seok-hyun, head of the VS unit.

By Lee Ji-yoon (jylee@heraldcorp.com)