LG Electronics said Tuesday it will exit the electric vehicle charger business, three years after entering the market, due to prolonged stagnation in demand and intensifying price competition. The decision is part of a strategic realignment aimed at strengthening the company’s focus on its heating, ventilation and air conditioning business, a key growth driver under its eco solutions division. "Due to structural shifts in the business environment, including a protracted demand slowdown — referred to as the ‘chasm’ — and intensifying price competition, we have decided to wind down the EV charger business," said an LG Electronics official. HiEV Charger, LG’s wholly owned subsidiary responsible for the manufacturing of EV charging equipment, will begin liquidation procedures. LG said all employees involved in the EV charging business will be reassigned to other divisions within the company. Despite winding down the business, LG said it will continue to provide maintenance and support services to existing clients without disruption. LG had initially entered the EV charging market with high expectations, aiming to make it a key pillar of its business-to-business portfolio. After starting preliminary research and development in 2018, the company acquired HiEV Charger, formerly AppleMango, in 2022 and launched charging infrastructure at E-mart stores and other domestic locations. Chief Executive Officer Cho Joo-wan previously identified EV charging as one of LG’s future growth engines, outlining a bold vision in 2023 to grow the segment into a trillion-won business by 2030 as part of LG’s 100 trillion won ($70 billion) revenue goal. At the beginning of last year, LG established a charger production base in Texas. The company partnered with ChargePoint, the No. 1 EV charging service provider in North America, in June, and has been operating six types of slow and fast EV chargers in both the domestic and North American markets. LG had also set a goal of securing an 8 percent share of the US fast charger market by 2030, aiming to become a global top-tier company. However, HiEV Charger marked two consecutive years of large deficits. It posted 10.6 billion won in revenue and an operating loss of 7.2 billion won last year. In 2023, the company posted 5.9 billion won in revenue with an operating loss of 7 billion won. (ICE SEOUL)

Fonte notizia: The Korea Herald