LG's next big India bet: New factory and automotive electronics business

LG Electronics is expanding its manufacturing push in India, as it is set to start operations at the Sri City facility in Andhra Pradesh by the end of November or early December. According to a Moneycontrol report, the company is looking to deepen local manufacturing while also entering the automotive electronics business through its Vehicle Solutions division.

At its new Sri City facility, the company plans to manufacture air conditioners and their key components during FY27 (April 2026–March 2027). LG plans to initially manufacture around 14 lakh air conditioner compressors annually. However, it plans to increase the capacity to over 20 lakh units per year, depending on demand.

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The report highlighted that LG may not restrict compressor production to its own air conditioners and could also supply compressors to other brands. This may open up an additional business-to-business (B2B) revenue stream for the company. 

It also quoted Atul Khanna, Chief Accounting Officer, LG Electronics India Ltd, who said, “We would be opening our first production line by November end and December beginning. It would be an air conditioner compressor line firstly, and immediately thereafter there would be an AC line as well, where installation is under progress.”

LG’s Sri City facility plans and automotive business plans

Initially, LG’s Sri City facility will cater to demand in southern India, while supporting the existing manufacturing plants in Noida, Uttar Pradesh and Pune, Maharashtra. The company is also planning to expand its manufacturing to ₹5,000 crore by FY29-FY30, highlighting a long-term commitment. 

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LG also plans to expand beyond consumer electronics and enter the automotive electronics market. Initially, it plans to expand across three areas: Telematics technology, which allows vehicles to connect to the internet and communicate with external networks; in-vehicle infotainment (IVI); and vehicle solutions. 

“India is one of the biggest and fastest-growing automotive markets in the world. At the same time, the current generation of cars in India is very well connected, digital, and smart tech, and that creates a very significant opportunity for LG India,” said Sanjay Chitkara, an LG Electronics India executive.

“In India, we will start with telematics, which is a technology that connects the car with the internet, and LG is globally number one. So we will bring this product first,” Chitkara added.