IAA Mobility 2023
Samsung Electronics and LG Electronics are gearing up to participate in the upcoming IAA Mobility 2023 event scheduled to take place in Munich, Germany, in early September. As these tech giants aggressively steer their businesses towards the burgeoning market of automotive electric and electronic components as their future growth engine, they seek to showcase their prowess in next-generation vehicular technologies and expand their global customer base at this prestigious event.
According to industry sources on July 30, LG Electronics, Samsung Display, and Samsung Electronics’ Device Solutions (DS) Division, which is responsible for the semiconductor business, will make their first appearance at the IAA Mobility Motor Show. In parallel, Samsung SDI and LG Magna, known for their consistent presence at major automotive events, will also be establishing exhibition booths at this year’s IAA.
Renowned as one of the “Big Three” motor shows worldwide, IAA Mobility is a flagship event organized by the German Association of the Automotive Industry and attracts major global automakers such as BMW, Porsche, and Volkswagen, alongside various international automotive and component companies.
The theme for this year’s exhibition is “Experience Connected Mobility,” and it will unfold from Sept. 5 to 10 (local time). The event will feature presentations from prominent figures including Oliver Zipse, CEO of BMW; Oliver Blume, CEO of Volkswagen; and Christiano Amon, CEO of Qualcomm; along with around 500 other distinguished speakers. Additionally, it is worth noting that German Chancellor Olaf Scholz is expected to attend the IAA Mobility.
While LG Electronics will participate in the IAA as a sponsor without a separate exhibition booth, industry experts speculate that they might seize this opportunity to explore potential business prospects, leveraging the presence of numerous global automakers.
Currently, LG Electronics is strategically expanding its automotive business through a diversified portfolio revolving around three core pillars: Infotainment, operating under the purview of the Vehicle Solution (VS) Business Unit; Electric Vehicle Powertrain, with LG Magna at the helm; and Vehicle Lighting Systems, catered by ZKW.
Notably, LG Electronics’ VS Business Unit has maintained five consecutive quarters of profitability. During the second quarter of this year, it recorded revenue of 2.6645 trillion won (US$2.08 billion) and an operating profit of 898 billion won. Furthermore, market forecasts indicate that its order backlog at the end of this year is expected to approach 100 trillion won.
In line with their commitment to innovative high-value products, LG Electronics aims to actively respond to future automotive trends and boost its automotive business revenue to more than 20 trillion won by 2030, doubling the current figure.
Also, LG Magna, which will feature an exhibition booth during the IAA, is likely to unveil its latest offerings, including intelligent electric powertrains and electric vehicle powertrains. LG Magna was established as a joint venture between LG Electronics and automotive component company Magna International in July 2021.