LG Electronics is going to supply AVM (Around View Monitor) system, which combines images that are produced from cameras that are attached at the front, the back, the left, and the right of a vehicle and provides a view like one is looking at a vehicle from the sky, to Geely that is a Chinese automotive manufacturer. This system will be used for premium vehicles as a luxury equipment for convenience. This is the first time LG Electronics is supplying its AVM system to a promising Chinese manufacturer and this will prepare a steppingstone for growth of LG Electronics in Chinese automotive markets that are growing rapidly.
According to this industry on the 8th, LG Electronics VC (Vehicle Components) Business Headquarter is going to mass-produce and supply AVM system to Geely for its mid-sized sedan.
AVM is useful in parking or driving on a narrow street and its major technology is based on combination of multi-channel images that are obtained from cameras that are attached at the front, the back, the left, and the right of a vehicle. LG Electronics forms cameras and image synthesis device as a system and supplies this system. Since this system is categorized as a luxury option, it is predicted that its unit cost will be more expensive than regular rear-view cameras.
It is heard that LG Electronics also won orders for Geely’s other vehicles besides this mid-sized sedan and is going to mass-produce this system starting from first half of this year. Geely’s mid-sized sedan that will be equipped with this system corresponds to Hyundai Motor Group’s Grandeur.
China is a market that is receiving most attention from automotive industries recently. Industries estimate that 23.20 million vehicles were sold in China in 2016 and this corresponds to 28% of global demands.
Geely is seen as the automotive manufacturer that has the highest growth. Stocks of Geely, which is listed on Hong Kong stock market, have increased by more than 100% in just a year and its yearly sales in 2016 increased by more than 50%. This value greatly exceeds China’s sales growth of entire cars which is 18%. Industries predict that Geely will once again increase its production aggressively in this year and supply double the amount of cars compared to last year.
Geely is popular as a company that purchased and revived ‘Volvo’ which is a luxury Swedish brand and possesses Geely, Volvo, and LYNK&Co brands. LYNK&Co is an eco-friendly vehicle brand that was recently established by Geely in order to enter global markets and it possesses Geely’s capital and Volvo’s technologies. Geely was also recently mentioned as the most likely candidate to purchase Malaysia’s ‘Proton’, which is South-East Asia’s only automotive manufacturer.
China is a customer that LG Electronics has to capture in order to enter global automotive markets. Chinese manufacturers are focusing all of its capabilities in developing eco-friendly vehicles such as electric cars and hybrid cars. Due to this reason, China is very important for LG Group that is looking for driving forces in industries for components of eco-friendly vehicles. LG Electronics VC Business Headquarters made $749 million (865.7 billion KRW) in fourth quarter of 2016 and is looking to make $866 million (1 trillion KRW) in sales per quarter.
“Due to characteristics of B2B, we cannot confirm any details regarding supply of AVM system.” said a representative for LG Electronics.
Staff Reporter Song, Junyoung | firstname.lastname@example.org