Dive Brief:
- LG Electronics plans to become a major automotive electrical component supplier and is targeting sales of $15.7 billion by 2030, the company said Wednesday.
- The company is targeting areas such as autonomous driving, electric vehicles, software, digital content and EV charging.
- The order backlog of LG’s vehicle solutions unit is expected to reach $78.5 billion by year-end as demand for in-vehicle electronics grows. In 2022, LG’s Vehicle component Solutions unit posted sales of $6.8 billion.
Dive Insight:
LG’s automotive ambitions are similar to rivals Nvidia and Qualcomm Technologies, as the new crop of software-based connected vehicles become more like smartphones. The company’s automotive products include dashboard displays and cockpit domain controllers.
In-vehicle infotainment systems comprise a significant portion of LG’s current automotive business. The hardware includes a vehicle communications module and a digital cockpit system. LG reported a 22.4% vehicle telematics market share in the first quarter of 2023.
LG is developing several new technologies, including a human-machine interface for software-defined vehicles to collect and analyze real-time environmental data to improve the safety of advanced driver assist systems.
“We will become a global leader in the electric vehicle (EV) components industry, driving the era of EVs and autonomous vehicles through technological and design innovation,” LG VS president Eun Seokhyun said at a June 29 event.
In addition to expanding its automotive business, LG also plans to expand its EV charging business in Europe and Asia before building production bases to target the North American market.
