iPhone maker Foxconn reportedly plans to establish an electric vehicle manufacturing base in India. The move is part of the company’s strategy to capture at least 5% of the global market, which is expected to reach a $600 billion valuation by 2025.
However, Foxconn has a different approach to operating its EV business. It does not directly produce and sell EVs, unlike most automakers. Its business model focuses on “Contract Design and Manufacturing Services.” Therefore, it only offers partner companies with its self-developed designs and production-related services.
Chairman Young Liu disclosed the company’s EV strategy in an exclusive interview with BBC.
“This is [electric vehicles] much more complicated than the iPhones. A typical EV will have about 10,000 parts, compared to phones that are about 600 parts. That’s roughly 20x more components.
We think it is very promising for us with that kind of business model to get into this EV business.”
Chairman Young Liu (via BBC)
Foxconn’s expansion plans
Foxconn initially housed its EV manufacturing operations in the world’s largest auto market, China. However, it recently started expanding to other foreign countries.
Chairman Liu stated that Foxconn has already secured a US factory in Ohio. It has an annual production capacity of 500,000 to 600,000 EVs. The company reportedly spent $230 million on the acquisition.
Now, it plans to establish a new factory in Thailand and India.
“Regional manufacturing for EVs is quite natural, since EVs are very bulky. That’s why we had a factory in Ohio, we’re going to have one in Thailand and soon we’ll have one in India.”
Chairman Young Liu (via BBC)
Foxconn currently concentrates on two-wheeler EVs while R&D capacity advancement is ongoing. The company aims to leverage its expertise in this segment to acquire R&D for four-wheeler EVs.
Foxconn’s annual report indicated that India will aid the company in offering two-wheeler EV manufacturing services this year. It also asserted that the company aims to include AI tech in its future four-wheeler EVs.
“India will also assist with the establishment of a production line this year to provide two-wheeled electric vehicle manufacturing services.”
Foxconn
See Also:
- Stellantis, Foxconn partner to develop next-gen EV semiconductors
- Foxconn sets sights on manufacturing 50% of all-electric cars worldwide
- Foxconn plans to join the EV bandwagon; is it too late?
- Saudi Crown Prince launches the kingdom’s first EV brand Ceer with Foxconn
- Apple iPhone maker Foxconn wants to make cars for Tesla as it ramps up EV push
The planned manufacturing hub in India will undoubtedly aid Foxconn in reaching its annual production target of 700,000 EVs by 2025. It plans to expand its R&D to gain more insights into the industry and product development. Considering the ongoing geo-political tension in the region, India has a high potential to advance as the company’s key market.
