LG Electronics is making a significant strategic investment in India, with plans to launch a new manufacturing unit in Sri City, Andhra Pradesh, by the end of November or early December 2026. This expansion underscores LG's commitment to deepening its local manufacturing footprint and marks its entry into the rapidly growing automotive electronics sector.
New Sri City Manufacturing Facility
The upcoming Sri City plant will initially focus on producing air conditioner compressors and components. According to Atul Khanna, Chief Accounting Officer at LG Electronics India Ltd, the first production line for AC compressors will be operational by late November or early December, followed immediately by an AC manufacturing line. The company aims to manufacture approximately 1.4 million AC compressors annually, with plans to scale production to over 2 million units per year based on market demand.
This facility will not only cater to the burgeoning demand in southern India but also support LG's existing manufacturing operations in Noida, Uttar Pradesh, and Pune, Maharashtra. The move also opens up potential business-to-business (B2B) opportunities, as LG may supply compressors to other brands, creating an additional revenue stream.
LG's long-term vision for its Indian manufacturing operations includes an ambitious investment expansion to ₹5,000 crore by the fiscal years 2029-2030, signaling a robust commitment to the Indian market.
Entry into Automotive Electronics
Beyond its traditional consumer electronics stronghold, LG is venturing into the automotive electronics market in India through its Vehicle Solutions division. This strategic pivot aligns with India's emergence as one of the largest and fastest-growing automotive markets globally, characterized by increasingly connected and smart vehicles.
Sanjay Chitkara, an LG Electronics India executive, highlighted the significant opportunity this presents. LG plans to initially focus on three key areas within automotive electronics:
- Telematics: Technology enabling vehicles to connect to the internet and communicate with external networks. LG is a global leader in this segment.
- In-Vehicle Infotainment (IVI): Systems providing entertainment and information within the vehicle.
- Vehicle Solutions: A broader category encompassing various smart technologies for modern automobiles.
The company will begin its automotive electronics journey in India by introducing its globally leading telematics products, leveraging the high demand for connected car technologies in the country. This dual expansion – enhanced local manufacturing and a new market entry – positions LG for substantial growth and diversified revenue streams in India's dynamic economy.