SEOUL — LG Electronics targets revenue of 20 trillion won ($15.6 billion) for its automotive components segment in 2030, more than doubling last year’s sales, the South Korean company said Wednesday.
The company aims to reach the target by expanding sales of infotainment equipment, such as car navigation and audio systems, as well as electric vehicle components. LG Electronics plans to develop the automotive segment into one of three core businesses alongside home electronics and televisions.
This vision forms a key part of the company’s long-term business plan unveiled Wednesday by CEO Cho Joo-wan at LG’s research and development complex in Seoul.
LG Electronics looks to bring in 100 trillion won in overall sales by the end of the decade, up from 65 trillion won in 2022. Its operating margin is expected to rise to 7% by 2030 from 4.3% last year.
The automotive segment will drive the overall growth in revenue. The order backlog for onboard components is projected to reach 100 trillion won by the end of the year, LG Electronics said, benefiting from the global shift to EVs.
LG Electronics has established a joint venture with Canadian auto supplier Magna International that makes electric powertrain components. The South Korean manufacturer said orders for infotainment equipment are climbing as EVs incorporate larger onboard screens.
LG Electronics’ automotive segment made 8.65 trillion won in sales last year, and went into the black for the first time with a 170 billion won operating profit. LG Electronics and sister battery company LG Energy Solution plan to raise their prominence as tier one auto suppliers.
Cho took over as CEO of LG Electronics 18 months ago.
“LG Electronics cannot become a sustainable company with the previous approach,” he said. “We’ll change from the bureaucratic organizational culture.”
Credit : https://asia.nikkei.com/Business/Electronics/LG-Electronics-aims-to-double-automotive-sales-to-16bn-by-2030
