LGE India to make vehicle solutions at Sri City facility

LG Electronics India Limited (LGE India) will manufacture and supply automotive infotainment and telematics solutions from its third plant at Sri City, Andhra Pradesh, extending its business-to-business operations after Q2 FY27 revenue rose 19.5% year on year to Rs 7,380 crore. The company announced the Vehicle Solutions entry on November 5, 2026.

What will LGE India make at Sri City?

LGE India will make automotive infotainment and telematics solutions at Sri City under its new Vehicle Solutions, In-Vehicle Infotainment business. The company said the initiative will bring LG Korea's global automotive B2B business to India, with products manufactured and supplied from its third plant in Andhra Pradesh. The announcement did not identify vehicle manufacturers, individual platforms or production capacity.

The Sri City facility is part of a wider manufacturing plan as well as the automotive initiative. LGE India expects the plant to commence operations in Q3 FY27 with compressor manufacturing, intended to enhance localisation and increase existing capacity for domestic and export demand. The November 5, 2026 release does not state whether automotive production will begin alongside compressor operations or provide a date for infotainment and telematics supplies.

How does Vehicle Solutions fit LGE India's B2B operations?

Vehicle Solutions adds an automotive-focused B2B vertical to LGE India's existing consumer electronics and commercial business mix. LGE India said its operations span home appliances, media entertainment, heating, ventilation and air conditioning, or HVAC, and commercial displays. Its Home Entertainment segment also reported growth in B2B Information Display in Q2 FY27, indicating an existing commercial revenue stream alongside televisions.

Management described the entry as part of its three-pillar strategy of Make-in-India, Make-for-India and Make-India-Global. Managing Director Hong Ju Jeon said LGE India was expanding beyond consumer electronics through Vehicle Solutions. The company also said it had added 20 new countries since its initial public offering, or IPO, but did not identify markets for automotive exports or disclose the prospective export share of Vehicle Solutions.

Which businesses are supporting LGE India's expansion?

LGE India's two existing operating segments both grew in Q2 FY27 before Vehicle Solutions contributed any separately disclosed revenue. Home Appliances & Air Solution, or H&A, generated Rs 4,772 crore of revenue, up 20.9% year on year, while Home Entertainment, or HE, generated Rs 2,608 crore, up 17.2%. Segment earnings before interest and tax, or EBIT, were Rs 416 crore for H&A and Rs 337 crore for HE.

H&A was the larger segment by revenue and recorded its highest quarterly growth since listing. LGE India said washing machines, refrigerators and room air conditioners delivered strong double-digit growth, while dishwashers delivered breakout growth. H&A EBIT rose 28.4% to Rs 416 crore and its margin increased to 8.7% from 8.2% in Q2 FY26, as operating leverage from volume growth offset commodity prices, import-related currency effects and festive-season go-to-market spending.

HE posted its third consecutive quarter of double-digit growth, led by televisions as consumers upgraded to larger screens, according to LGE India. HE EBIT rose 19.9% to Rs 337 crore and its margin reached 12.9%, compared with 12.6% in Q2 FY26. The company said higher revenue and improved profitability in B2B Information Display offset elevated panel costs, import-related currency effects and incremental festive-market investment.

What are LGE India's financial targets and next milestones?

LGE India reaffirmed FY27 targets of mid-teen revenue growth and an early double-digit earnings before interest, tax, depreciation and amortisation, or EBITDA, margin. In Q2 FY27, EBITDA rose 28.0% year on year to Rs 701 crore, faster than the 19.5% increase in revenue, while EBITDA margin expanded 63 basis points to 9.5% from 8.9%. One basis point equals one-hundredth of a percentage point.

The first-half figures provide the financial context for the Sri City and Vehicle Solutions plans. H1 FY27 revenue increased 17.5% to Rs 14,613 crore from Rs 12,437 crore in H1 FY26, while EBITDA rose 27.9% to Rs 1,616 crore and margin improved to 11.1% from 10.2%. Profit after tax increased 26.5% to Rs 1,142 crore, but the release gave no separate investment budget, revenue target or profitability target for Vehicle Solutions.

LGE India said Q2 FY27 go-to-market spending had positioned channels for the festive and wedding season. Its stated product priorities include Mini LED televisions alongside large-screen, QNED and OLED models, energy-efficient air conditioners, and French Door refrigerators and dishwashers. Management identified commodity and currency trends as key monitorables and said it was addressing them through localisation, calibrated pricing and operational efficiency.

Conclusion

LGE India's Vehicle Solutions entry extends its B2B activity from commercial displays and B2B Information Display into automotive infotainment and telematics. The expansion follows Q2 FY27 growth in both established segments, with H&A revenue up 20.9% to Rs 4,772 crore and HE revenue up 17.2% to Rs 2,608 crore, while total profit after tax rose 25.7% to Rs 489 crore.

The next disclosed operating milestone is the expected Q3 FY27 start of Sri City operations with compressor manufacturing. Investors can also track progress against management's mid-teen FY27 revenue-growth and early double-digit EBITDA-margin targets, while awaiting details not disclosed on automotive customers, production capacity, investment and the timing of infotainment or telematics output.