A concept photo of automotive lighting systems from ZKW (LG Electronics)
LG Electronics said on Tuesday that its auto parts business secured new orders worth 8 trillion won ($6.16 billion) in the first half of this year, with the cumulative total of orders expected to exceed 65 trillion won by the end of this year.
The company said its Vehicle Component Solution unit recently signed a series of new agreements with global automakers to supply its in-car infotainment systems and 5G telematics solutions.
The Korean tech giant seeks to strengthen its competitiveness in the future mobility sector with three main pillars: infotainment, powertrains and automotive lighting systems.
The VS unit specializes in the development of in-car infotainment systems such as telematics and AVN or audio, video and navigation solutions, while its two subsidiaries ZKW and LG Magna e-Powertrain specialize in the areas automotive lighting systems and electric vehicle powertrains. , respectively.
Last year, LG recorded 6.7 trillion won in auto parts sales, up 24 percent from a year ago. The company touted the figure as “solid growth” as global automakers are hit with production constraints due to chip shortages.
According to market tracker Strategy Analytics, LG achieved 22.7% of global telematics sales in the first quarter of this year.
In recent years, LG has supplied its infotainment systems to a number of car manufacturers, including Mercedes-Benz, Renault and General Motors. Customers of ZKW lighting systems are BMW, Mercedes-Benz, Audi and Porsche.
LG Magna, a newly formed joint venture with Canadian auto parts manufacturer Magna International, is expanding its global production network. After its production facilities in South Korea and China, the company recently launched the construction of a new parts plant in Mexico.
“We will continue to deliver differentiated values to our corporate customers through our technological prowess in key auto parts sectors,” said Eun Seok-hyun, VS Unit Manager.
By Lee Ji-yoon (firstname.lastname@example.org)