LG is the latest manufacturer to set up local assembly lines in India. Local production will initially commence with two models, with more set to be added at a later date. The South Korean vendor is looking to boost its presence in the mobile segment, and as such will be rolling out new models "customized" for the Indian market. The goal with local manufacturing is to cut down on duties, and LG is targeting a 10% reduction in price with the move.
From Economic Times:
The South Korean parent company has already inked an agreement with GDN Enterprises, a part of New Delhi-based Optiemus Group, for manufacturing and has started trial production with two models. The lines have been imported from South Korea and will be expanded to include more models, three senior industry executives said.
LG leads the way in India's home appliances segment, but the vendor has failed to make a dent in the mobile market. That's all set to change, as LG India managing director Ki Wan Kim said that the manufacturer is looking to revamp its portfolio with models that are customized for the country:
The business has been a poor performer due to poor product portfolio. We will revamp the portfolio from this month. Our products are superior to competition which we will focus through experiential marketing.
We will pursue to make LG a premium brand in India. The effort is to develop products based on consumer insights. While for existing categories we will focus on energy efficient products, we are also evaluating air and water purifiers as next growth areas.