Foxconn Technology Group, the world's largest contract electronics manufacturer, is exploring options to make India its third global hub for electric vehicle (EV) contract production.
The Taiwanese company aims to supply five to seven lakh EVs by 2025, which will account for 5 percent of total electric vehicle sales worldwide, a report has said.
The company has already acquired a manufacturing unit in Ohio, US, for $230 million, which can produce five to six lakh vehicles every year.
The iPhone maker also has a factory in Thailand to make EVs. The plant, built in a joint venture with Thailand's energy giant PTT, will have an initial production capacity of 50,000 vehicles a year, which can be scaled up to produce 1.5 lakh units, the Business Standard reported on August 14.
Moneycontrol couldn't verify the report independently.
Foxconn assembles commercial EVs and e-buses but plans to move into passenger car production this year, the financial daily reported, citing the company’s annual report released recently.
For this, the Taiwanese company held talks with Telangana and Tamil Nadu governments to set up an EV plant and a decision is likely soon.
It has also tied up with Yulon Motors, Taiwan's largest automaker, to build the first EV under the Luggen 7 brand this year. About 30 percent of Foxconn's revenue comes from countries other than China. The company said it was also considering setting up plants in Mexico, Vietnam, Indonesia and Europe.
Also Read: Foxconn signs LoI with Tamil Nadu to set up Rs 1,600 cr mobile components plant, generate 6,000 jobs
Experts say Foxconn can benefit from the growing competition in the EV space, which forced Elon Musk’s Tesla to slash the prices of its cars. Notably, new companies that cannot negotiate the supply chain or do not have experience in manufacturing vehicles can also outsource production.
India play
Foxconn may have an advantage in India, as it is already the largest electronics manufacturing service provider in the country. It is the largest contract manufacturer of iPhones for Apple for India and export markets.
Bharat FIH, Foxconn’s Indian arm, has been producing electronic components for EV two-wheeler companies such as Ather Energy and Ola Electric since 2015.
Foxconn is also planning to set up a compound semiconductor fab plant for gallium nitride and silicon carbide chips, critical components for the electric auto industry.
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