Amid Anti-China Sentiment, LG Plans Boosting Local Production in India: Report

  • Korea-based LG plans to invest to increase its production levels by upto 15 per cent
  • LG pointed out that the demand for its smartphones has increased by 10 times

LG is in talks with a leading India-based contract manufacture for getting a share of its smartphones made in India. The company’s spokesperson, in a conversation with the Economic Times pointed out that LG is also gearing up to apply for the recent Production Linked Incentive scheme announced by the government of India.

The company plans to hit the Indian markets with six new smartphone models across all segments. These will include models in the entry, as well as, flagship segment of smartphones.

The anti-China sentiment

Follwing the outbreak of Covid-19 (originating from China) and the recent tensions between the Chinese and Indian armed forces, the tensions between the two countries have escalated to new heights. Around 20 of India’s soldiers were killed on the border in a fight that China started.

Samsung, has also shown intentions to setup a display manufacturing facility in India recently. The govt of Uttar Pradesh had confirmed that it was considering incentives for Samsung as well.


Yonhap news agency had earlier reported that the LG Group was selling its twin towers located in Beijing, China. These towers are being sold to RECO Changan Private Ltd at $1.15 billion price tag.

It is to be noted here that these towers are owned by LG Holding Hong Kong. LG Electronics Inc., LG Chem Inc. and LG International Corp have a stake in the LG Holding Hing Kong. Samsung had also shut its smartphone manufacturing operations in China. Sony had also said that it would be manufacturing smartphones in Thailand instead of China.

LG in the smartphone arena

LG’s presence in the smartphone vertical has been on a dwindling side since several years now. The LG Mobile Communications Company had reported first-quarter sales of KRW 998.6 billion (USD 843.9 million), narrowing its operating loss to KRW 237.8 billion (USD 200.96 million) from the previous quarter.

“Sales decreased nearly 34 percent from last year’s first quarter, primarily due to supply disruptions from Chinese partners. Costs were further reigned in through production and marketing efficiencies, ongoing efforts to help buffer the effect of the pandemic. The new LG Velvet 5G smartphone launch in Korea during the second quarter will mark a new direction with a different design philosophy, competitive yet value-conscious components and enhanced online sales initiatives,” had read LG’s official statement.

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