Foxconn, well known as the manufacturer of the iconic Apple iPhone, is reportedly planning to join the Indian market for the production of electric vehicles (EVs).
According to Foxconn’s annual report, which was released on May 31, India will help set up a production line this year that will offer services for the manufacture of two-wheeled electric vehicles (EVs) that will serve the Southeast Asian market.
This is the first time the Taiwanese corporation has formally acknowledged that it intends to further its goals of expanding its electric vehicle manufacturing in India.
A delegation from India is scheduled to visit Taiwan shortly, according to sources, where they will meet with Foxconn executives to talk about the company’s ambitions for electric vehicles. One of the aforementioned sources added, “It is still unknown if Foxconn will use the JV (joint venture) route to provide contract manufacturing for numerous brands or for a single brand“.
The person continued, “They have a tie-up with Ather Energy (a manufacturer of electric scooters), but it is likely that they would search for a partner when they enter the space — potentially with one of the (Indian) car titans, as they did with semiconductors.
A joint venture to produce semiconductors in India was announced by Vedanta and Hon Hai Technology Group (Foxconn) in February 2022.
“The company seeks to be the Android of the EV ecosystem.”
During their visit to the nation last year, officials from four states Maharashtra, Telangana, Tamil Nadu, and Andhra Pradesh reportedly met with top Foxconn executives to discuss plans for EV manufacturing.
While Foxconn is interested in Maharashtra as a base for EV manufacturing, “there were some challenges that cropped up,” according to a source familiar with the company’s thinking on the subject. As a result, they might take into account Tamil Nadu because the state already hosts Foxconn and is a hub for auto manufacturing.
Since Telangana is “the most active state in terms of outreach and incentives,” the corporation is also considering it.
Prime Minister Narendra Modi tweeted last year that the Taiwanese company’s “push for EV manufacturing is in line with our commitment to net zero emissions” during Foxconn Chairman Young Liu’s maiden trip to India.
Mobility Push
Neil Shah, vice president of research at Counterpoint Research, noted that “mobility is a new space for Foxconn” and that the contract manufacturer is using the “Build-Operate-Localise (BOL) model” in the production of electric vehicles.
The business aims to create a vertical platform that encompasses hardware, component production, battery management, and manufacturing. Afterward, through its MIH (Mobility in Harmony) platform, it collaborates with nearby businesses.
With its focus now firmly set on the mobility market, Foxconn, the largest contract manufacturer for Apple, has garnered prominence on a global scale. In addition to others, it is now working on automobile projects with the Yulon Group in Taiwan, Lordstown Motors and Fisker Inc. in the US, and Thailand’s national oil business, PTT. It declared in November 2022 that it would collaborate with the Saudi Public Investment Fund to launch the Ceer EV brand.
