What LG India hopes to gain from its entry into automotive electronics

Looking to diversify its business beyond consumer electronics and home appliances, LG Electronics India Ltd on Thursday announced its entry into the automotive electronics business.

The company, in a regulatory filing, said it plans to manufacture in-vehicle infotainment and telematics solutions at its third plant in Sri City, Andhra Pradesh.

The company's board has approved the adoption of Vehicle Solutions as a new line of business that goes considerably beyond conventional in-car entertainment systems.

What does the business scope include?

It covers digital cockpits, automotive displays, head-up displays, telematics, vehicle connectivity, electronic control units and high-performance computing systems.

The proposed business scope also includes advanced driver assistance systems (ADAS), automotive vision and sensing systems, adaptive cruise control, emergency braking and steering systems, traffic sign recognition, driver and occupant monitoring systems and adaptive lighting technologies.

“We are expanding our footprint in the rapidly evolving B2B sector, by entering a new B2B vertical, Vehicle Solutions,” LG Electronics India Managing Director Hong Ju Jeon said.

“Our foundational three-pillar strategy—Make-in-India, Make-for-India, and Make-India-Global—will continue driving our ambitious growth trajectory across domestic and export markets,” he said.

“The investments shall be undertaken in a phased manner, based on the scale of operations, technology and equipment requirements, regulatory requirements and prevailing market conditions,” the filing stated.

What the company expects

LG Electronics India has identified four broad benefits from its entry into the Vehicle Solutions business.

First, the company expects to diversify its business portfolio beyond its existing product offerings by entering the automotive electronics and mobility solutions sector.

Second, it hopes to tap growth opportunities arising from increasing demand for connected vehicles, digital cockpits, advanced infotainment systems and intelligent mobility solutions.

Third, the company expects the move to help establish and strengthen its presence in India's automotive and mobility ecosystem.

Fourth, LG expects the new vertical to create additional business opportunities and potential revenue streams, contributing to its long-term growth prospects.

Investment plan

The company has not specified the investment planned for the new business or its expected revenue contribution.

“The investments shall be undertaken in a phased manner, based on the scale of operations, technology and equipment requirements, regulatory requirements and prevailing market conditions,” the filing stated.

Q2 results

The consumer goods player posted a 25.66% year-on-year (YoY) surge in its net profit to ₹489.35 crore in the July-September quarter of the 2026-27 financial year (Q2 FY27).

In the corresponding period of the preceding fiscal year, it had logged a profit of ₹389.43 crore.

Its revenue from operations advanced 19.5% YoY to ₹7,380.05 crore during the quarter under review, compared with ₹6,174.03 crore in the second quarter of the 2025-26 fiscal year (Q2 FY26).

At an operational level, its EBITDA (earnings before interest, tax, depreciation and amortisation), also known as operating profit, stood at ₹701 crore in Q2 FY27, registering a 28% YoY growth from ₹548 crore in the year-ago period.