New Brazil plant and region-specific products drive growth in India, Saudi Arabia, and Brazil
LG Electronics is accelerating growth in the Global South, a term referring to emerging markets in non-Western developing countries. The company has set an ambitious goal of doubling sales by 2030 in India, Saudi Arabia, and Brazil, and is intensifying region-specific and localization strategies.
According to LG Electronics on the 22nd, the combined sales of India, Saudi Arabia, and Brazil — key countries leading the Global South growth strategy — reached 6.2 trillion Korean won last year, a growth of over 20% compared to 2023, two years prior. This figure exceeds double the company’s global sales growth rate during the same period.
The company explained that despite the global economic downturn and delayed demand recovery, these emerging markets are showing notable growth driven by their inherent potential.
LG Electronics has planned to double sales in these countries by 2030. CEO Lyu Jae-cheol also publicly stated this goal in his first message to employees late last year.
The strategy aims to maximize growth in high-potential markets to serve as a foundation for mid- to long-term corporate growth, while diversifying the regional portfolio, which has been heavily focused on advanced markets like South Korea, North America, and Europe.
As part of this strategy, LG Electronics plans to launch region-specific products and establish localized business infrastructure.
In Paraná State, southern Brazil, the company is investing over 200 million dollars (approximately 290 billion Korean won) to build a new production facility spanning 767,000 square meters (approximately 230,000 pyeong) in site area and 70,000 square meters (approximately 21,000 pyeong) in floor area, aiming for operation within the year.
The new plant will produce premium and region-adapted products. It will enhance cost competitiveness in response to growing local home appliance demand and serve as a hub for exporting to neighboring countries, strengthening LG’s position in the South American market.
Combined with the existing production base in Manaus, Amazonas State, northern Brazil, LG’s annual premium home appliance and component production capacity in Brazil is expected to reach 7.2 million units.
In India, the world’s most populous country, LG Electronics holds the top market share in major home appliance categories. The company has introduced the ‘Essential Series,’ a line of India-exclusive appliances designed to align with local preferences, lifestyles, and purchasing power.
The Essential Series includes washing machines, air conditioners, and refrigerators, which are recognized as essential appliances by India’s young middle-class households.
LG Electronics is also focusing on the Saudi Arabian market. The country is gaining attention for its Vision 2030-driven government policies and development projects, creating opportunities for business-to-government (B2G) and business-to-business (B2B) collaborations.
LG entered the Saudi market in 1995 through a partnership with Shaker, the largest home appliance distributor, and has maintained a strong collaboration for over 30 years. The two companies are jointly developing region-specific technologies, such as heating, ventilation, and air conditioning (HVAC) systems optimized for extreme summer conditions.
