LG Elec expands global auto electronics market share

South Korea’s LG Electronics Inc. is raising its market share in the global automotive electronics industry with the company’s audio, video and navigation (AVN) unit accounting for more than 10% of the market for the first time this year.

LG reaped the rewards of diversification of suppliers that improved the company’s supply chain management (SCM), encroaching on competitors’ market shares.

The home appliance giant accounted for 10.9% of the global AVN market in the third quarter, on course to exceed the 10% mark for this year, according to industry sources on Dec.12. That compared with 8.1% in 2020 and 7.1% in 2016.

The higher market share this year is expected to help LG become one of the world’s five largest ANV makers, industry sources said.

“The gap with Harman, the top player with a market share of around 20%, is also narrowing faster than expected,” said one of the sources.

That came as LG has been pushing to enhance its SCM, a core decisive factor for the industry’s competitiveness. Some automotive electronics makers were unable to meet product volumes and delivery dates as contracted because they could not secure parts and chips on time.

“We have diversified suppliers to manufacture the products clients want in a timely manner,” said a source at LG.

POTENTIAL APPLE CAR SUPPLIER

Its technologies for the infotainment systems including AVN were favorably received with LG continuously mentioned as a potential supplier to the Apple Car. Last year, an advanced vehicle infotainment system jointly developed by LG and Jaguar Land Rover received an award of best-connected technology in the industry from the European motoring organization AUTOBEST.

LG’s automotive electronics business is one of its key future growth engines. The company is focusing on expanding the infotainment business, the revenue of which accounts for about 60% of the total automotive electronics.

Earlier this month, LG’s vehicle component solutions (VS) division incorporated an infotainment unit, which had been under the smart business division, in order to make swift decisions in the quickly changing market environment.

“LG Electronics’ infotainment system has been installed in German’s Volkswagen cars following Daimler in Germany and Renault in France,” said the LG source. “We aim to continuously expand our market share.”

Write to Sin-Young Park at nyusos@hankyung.com
Jongwoo Cheon edited this article.