LG Electronics plans to exceed 100 trillion won in revenue by 2030, making it one of the top 10 auto parts manufacturers in the world.
CTOnews.com July 12 news, LG Electronics said today that the company plans to achieve sales of 100 trillion won (CTOnews.com Note: currently about 557 billion yuan) by 2030, and will invest about 50 trillion won (currently about 278.5 billion yuan) to promote various strategies.
In the new plan, LG Electronics regards the auto parts business as one of the most important development directions. The company plans to become one of the top 10 global auto parts manufacturers by 2030 and more than double its related business revenue to 20 trillion won (currently about 111.4 billion yuan). In addition, LG Electronics plans to strengthen the service platform of its home appliance and TV business to generate more recurring profits, such as media subscription and rental revenue.
LG Electronics CEO William Zhao (William Cho) said at a news conference: "LG Electronics will transform its business portfolio, increase profits through the growth of B2B business, and shift to service business. We will not be satisfied with our past success in home appliances."
LG Electronics also plans to enter new markets such as electric car charging and digital health care, and in order to achieve its goals, the company said it would actively consider joint ventures and mergers and acquisitions. LG Electronics aims to achieve an operating margin of 7 per cent by 2030.
In 2022, LG Electronics reported combined sales of about 65 trillion won (currently about 362.05 billion yuan), excluding LG Innotek, a subsidiary that makes device components such as smartphone camera modules.
LG Electronics said it expected its fast-growing auto parts solutions, the company's newest business unit, to have a backlog of orders of nearly 100 trillion won (currently about 557 billion yuan) by the end of the year, and that revenue would be distributed over the next few years. The auto parts solutions division, which also produces infotainment systems and lamps, turned a profit last year, with quarterly sales of 2.4 trillion won (currently about 13.368 billion yuan) from January to March this year.
