Foxconn to increase investment in India with EV factory

In the wake of plans for replacing/substituting China as the world’s manufacturing and supply chain hub, India is turning into quite a favorable destination. A testament to the same is Foxconn’s recent announcement about setting up an electronic vehicle (EV) manufacturing factory in the country. The iPhone manufacturer is currently in talks with state governments to take a decision on the location of the factory.

In its annual report, published on May 31, Foxconn said that India will assist with the establishment of a production line this year to provide two-wheeled EV manufacturing services that will cater to the EV two-wheeler market in Southeast Asia. In fact, Foxconn also met officials from the state governments of Maharashtra, Telangana, Tamil Nadu and Andhra Pradesh during their last visit, as these states would offer the most lucrative incentives in the long run.

According to sources, an Indian delegation may also be visiting Taiwan to meet with Foxconn executives to discuss the company’s EV plans. It is still unclear if Foxconn will do contract manufacturing for multiple brands or for a single brand through the joint venture route.

“They have a tie-up with Ather Energy (electric scooter maker) but it is likely that they will look for a partner when they come into the space — possibly with one of the (Indian) auto giants — as they did for semiconductors,” said one of the sources cited above.

Foxconn, which gained global recognition for being Apple’s largest contract manufacturer, now has its eyes fixed on mobility. Currently, it has car projects running with the Yulon Group in Taiwan, with Fisker Inc. and Lordstown Motors in the US, and with state oil company PTT in Thailand, among others. In November 2022, it announced that it was teaming up with the Saudi Public Investment Fund to create a new EV brand called Ceer.

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