LG Electronics India is set to enter the automotive technology business, proposing to manufacture vehicle systems and software at its upcoming third facility in Sri City, Andhra Pradesh. The company’s board cleared the proposed expansion on November 5, according to a regulatory filing, though the plan will take effect only after shareholders approve an amendment to its memorandum of association through a postal ballot.
The proposed business will cover several technology-intensive areas used in modern vehicles. These include in-vehicle infotainment, which refers to systems that provide functions such as information and entertainment inside a car; displays designed for automotive use; telematics, which enables the exchange of vehicle-related data; vehicle computing systems; advanced driver assistance systems, or ADAS; and automotive software.
New business beyond home appliances
The move represents a diversification from LG Electronics India’s established operations in home appliances and consumer electronics. By adding vehicle technology to its proposed activities, the company would be positioned to supply components and digital systems for connected mobility. The filing, however, does not specify which vehicle manufacturers may become customers or when production of the proposed automotive products will begin.
LG Electronics India has also not disclosed the amount it plans to invest in the new business. Instead, it said spending would be carried out in stages, depending on the scale of operations, the technologies and equipment required, and market conditions. This means the size and timing of the project will be determined progressively rather than through a single announced investment commitment.
- Products proposed: infotainment systems, vehicle displays, telematics, computing systems, ADAS and automotive software.
- Location: the company’s upcoming third manufacturing facility at Sri City in Andhra Pradesh.
- Approval required: shareholders must clear the proposed change to the company’s memorandum of association.
- Investment plan: spending will be undertaken in phases; no outlay has been announced.
Manufacturing expansion at Sri City
The automotive proposal comes as LG Electronics India continues to build manufacturing capacity at Sri City. Compressor production at the facility is expected to begin in the third quarter of FY27, the company said. The planned start is separate from the proposed automotive technology operations, and the filing does not state whether the two activities will use the same production lines or infrastructure.
The company’s latest financial performance provides the broader business context for the expansion. Net profit rose 25.7 per cent year-on-year to ₹489 crore in the second quarter of FY27, while revenue increased 19.5 per cent to ₹7,380 crore. Earnings before interest, taxes, depreciation and amortisation, commonly used to assess operating performance, grew 28 per cent to ₹701 crore. The EBITDA margin also improved to 9.5 per cent from 8.9 per cent in the corresponding period last year.
| Indicator | Second quarter of FY27 |
|---|---|
| Net profit | ₹489 crore, up 25.7% |
| Revenue | ₹7,380 crore, up 19.5% |
| EBITDA | ₹701 crore, up 28% |
| EBITDA margin | 9.5%, compared with 8.9% a year earlier |
Performance and execution will determine impact
The Home Appliances & Air Solution division, LG Electronics India’s larger business, recorded revenue of ₹4,772 crore, an increase of 20.9 per cent. Revenue from Home Entertainment rose 17.2 per cent to ₹2,608 crore. For FY27, the company retained its guidance of mid-teen revenue growth and an early double-digit EBITDA margin.
For Indian users, the significance of the announcement will depend less on the product list and more on execution. Vehicle displays, connected data systems and driver-assistance features can make cars more technology-led, but the filing does not provide details on the models, customers, pricing or safety certification associated with LG’s proposed products. The immediate development is therefore a formal entry plan, not a confirmation that automotive products are already available in the market. Shareholder approval, phased investment and the eventual scale of manufacturing will determine how substantially the company expands its presence in India’s automotive technology supply chain.
