Foxconn is on the prowl in EV space; what this could mean for India

The world is moving toward seamless technology, where machine often replaces man and smart devices are no longer just for communication. The latest to tap the trend is Taiwan’s Foxconn — the global contract manufacturing giant that was started in 1974 to make plastic knobs for black & white TV sets, and is now best known for producing iPhones and other major electronic gadgets.

The company made headlines earlier this week with plans to enter the electric vehicle (EV) space, unveiling three prototypes. These are the Model C SUV and the Model E sedan with features like race-car level acceleration and a 750 km range. The third, Model T bus, offers a range of 400 km on single charge and a top speed of 120 kmph.

Manufacturing hub

Now, in what spells promising news for India, it has said it may look to manufacture its EVs here. Foxconn Chairman Liu Young-way reportedly told the media that his company is open to manufacture its vehicles in emerging economies such as India and Brazil, as well as select European nations.

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As India tries to rebuild its image as an automobile manufacturing hub — hit hard by the exit of Ford Motors, Harley-Davidson, General Motors, Fiat and UM Motorcycles — a Foxconn deal may be just what the doctor ordered.

“We are no longer the new kid in town,” media reports quoted Young Liu, Chairman of the company’s flagship unit Hon Hai Precision Industry Co as saying. “We have gradually built an EV supply chain and showcased our EV hardware.”

While Apple, one of the biggest customers of Foxconn, is said to be readying its secret EV plans, the Taiwanese firm has expressed its readiness to ‘indirectly’ cooperate with German carmakers.

This has auto industry insiders guessing that Foxconn will be keener to produce EVs for its automotive customers than to make them under its own brand.

Quick action

In moves that only reflect Foxconn’s prowess in the manufacturing space, the company has announced several plans in quick succession for its EV foray. In May 2021, the company and the Stellantis Group had unveiled a plan for a joint venture to supply in-car and connected-car technologies. Additionally, Foxconn has formed a deal with US-based EV maker Fisker and Thai energy major PTT PCL.

It has acquired a manufacturing facility in the US from Lordstown Motors for its EV production, and picked up a chip plant in Taiwan, too.