LG Electronics Exits EV Charger Business After 3 Years... Focuses on HVAC Business

Business Restructuring Amid the 'EV Chasm'
Liquidation of Manufacturing Subsidiary and Team Reassignment
Focusing on the HVAC Business Moving Forward

LG Electronics is withdrawing from the electric vehicle charger business after three years. This move is interpreted as a response to the recent sharp decline in electric vehicle market demand due to the global economic downturn.

On April 22, LG Electronics announced its decision to end the electric vehicle charger business under its Eco Solution (ES) Business Division. The company cited "strategic rebalancing (business restructuring) in response to changes in the business environment, such as delayed market growth and intensified price-based competition" as the reason for the exit.

All employees who were responsible for this business will be reassigned to other business units within LG Electronics. The subsidiary HiEV Charger (formerly AppleMango), which was in charge of manufacturing electric vehicle chargers, will undergo liquidation procedures. Maintenance services for existing customers will continue without disruption after the business is closed.

Electric vehicle chargers from LG Electronics (from left: 7kW wall-mounted, 100kW, 200kW), provided by LG Electronics

Previously, LG Electronics entered the market in 2022 by acquiring AppleMango and subsequently purchasing the electric vehicle charger manufacturing business from SME Spil. At that time, the company planned to grow the electric vehicle charger business to over 1 trillion won. However, it appears that the recent sharp decline in electric vehicle demand and continued pressure from high tariffs in the United States led to the decision to discontinue the business.

Going forward, the ES Business Division will focus on the HVAC (heating, ventilation, and air conditioning) business, including home and commercial air conditioners, chillers, heat pumps, and data center cooling solutions. LG Electronics stated, "We will secure business opportunities in adjacent areas where we can leverage related core competencies and create synergies, while also identifying new growth engines for the future."

This content was produced with the assistance of AI translation services.