Date: July 1, 2023
LG the renowned South Korean technology has announced a staggering backlog of vehicle system orders worth $76 billion for the year 2023. After its vehicle system (VS) division went bankrupt in 2022, South Korea’s LG Electronics Inc., a well-known name in the home appliances industry, is finding new success in the automotive electronics sector.
LG’s vehicle systems include a wide range of components and solutions, such as infotainment systems, battery management systems, electric powertrains, and advanced driver assistance systems (ADAS). These systems are crucial for enhancing the overall performance, safety, and user experience of modern vehicles.
During the anniversary celebration, LG also unveiled a 10-year vision for the VS unit, whose earnings are anticipated to increase by a factor of two over last year. The 2013 introduction of the VS unit brought together all of the subsidiaries of the LG Group’s businesses involved in automotive electrical components.
In addition to electric and autonomous vehicles, LG’s vehicle systems are also in high demand for conventional internal combustion engine (ICE) vehicles. LG Electronics continued to lead the telematics industry with a 22.4% market share as of the first quarter, according to market research firm Strategy Analytics. Additionally, since 2021, it has enjoyed a double-digit proportion of the automobile AVN market.
The $76 billion backlog in vehicle system orders reflects LG’s strong market presence and its ability to meet the demands of the automotive industry. The division’s revenue is anticipated to increase by 25% to 10.8 trillion won in 2023 compared to the previous year, according to a brokerage companies’ consensus prediction. In comparison to the prior year, operating profit is anticipated to nearly double to 310 billion won. The company’s focus on sustainable mobility solutions and commitment to technological advancements bode well for its future growth and success in the global automotive market.
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