To Strengthen Cooperation with Global Carmakers
LG Magna e-Powertrain, a subsidiary of LG Electronics specializing in automotive electronics (electronic equipment), has set up three overseas offices within three months of its establishment.
The company established its headquarters in Cheongna of Korea and subsidiaries in Detroit of the United States and Nanjing of China in July. Since then, it has added three new overseas offices-- one in Shanghai of China, another in Sulzbach of Germany, and the other in Tokyo of Japan. All of them are home to the headquarters of leading global carmakers. The offices are intended to strengthen cooperation with overseas carmakers.
As the electric and autonomous vehicle industries grow into the mainstream of the future automobile industry, demand for automobile electric powertrains is on a sharp rise. Sales in the global electric vehicle powertrain market are expected to reach US$654.95 billion in 2028 from US$71.85 billion in 2020, according to Market & Research, a global market research firm. The average annual growth rate is expected to reach 33.5 percent.
Since 2013, LG Electronics has increased investment by selecting the electricity industry as a future food. LG Magna e-Powertrain is a wholly owned subsidiary of LG Electronics. LG Electronics established LG Magna e-Powertrain in July 2021 in collaboration with Canada's Magna International, the world's third-largest auto parts company, by splitting off the powertrain business from LG Electronics’ VS Business Division.
The market estimates LG Magna e-Powertrain’s sales in 2021 at around 500 billion won. Considering that LG Electronics predicted LG Magna e-Powertrain’s annual average sales growth rate of 50 percent at the time of its first-quarter earnings announcement, the company is expected to rack up one trillion won in sales in 2023 and 2 trillion won in sales in 2025.