Foxconn Technology Group, is eyeing India as its third global hub for electric vehicle (EV) contract production.
As per a report, the Taiwanese company is looking to supply five to seven lakh EVs by 2025, which will account for 5 percent of total electric vehicle sales worldwide. The company has already acquired a manufacturing unit in Ohio, US, for $230 million, which can produce five to six lakh vehicles every year.
In parallel, the company operates an EV plant in Thailand and is preparing to expand into passenger car manufacturing.
Discussions with Indian state governments for an EV plant leveraging Foxconn’s robust electronics manufacturing capabilities in the country are also ongoing.
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.
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.
The Indian play
Foxconn can take advantage of being the largest electronics manufacturing service provider in the country and the largest contract manufacturer of iPhones for Apple for India and export markets.
The company’s Indian arm, Bharat FIH has been producing electronic components for EV two-wheeler companies such as Ather Energy and Ola Electric since 2015.
Foxconn plans to set up a compound semiconductor fab plant for gallium nitride and silicon carbide chips, critical components for the electric auto industry.