Foxconn aims to Make India its Third EV Hub by 2025, With a 5% Global Market Share By CIOTechOutlook Team

Foxconn aims to Make India its Third EV Hub by 2025, With a 5% Global Market Share

CIOTechOutlook Team | Monday, 14 August 2023, 06:04 IST

The world's largest contract electronics manufacturer, Foxconn Technology Group, is looking into making India its third global hub for electric vehicle (EV) contract production.

According to a report, the Taiwanese company aims to supply five to seven lakh EVs by 2025, accounting for 5% of total electric vehicle sales worldwide.

For $230 million, the company already purchased a manufacturing unit in Ohio, US, capable of producing 5 to 6 lakh vehicles per year.

The iPhone maker also has an EV factory in Thailand. The plant, built in collaboration with Thailand's energy behemoth PTT, will have an initial production capacity of 50,000 vehicles per year, which can be scaled up to 1.5 lakh units, according to the reports on August 14.

Foxconn currently assembles commercial EVs and e-buses but plans to expand into passenger car production this year, according to the financial daily, citing the company's recently released annual report.

The Taiwanese firm has held talks with the governments of Telangana and Tamil Nadu about establishing an EV plant, and a decision is expected soon.

It has also partnered with Yulon Motors, Taiwan's largest automaker, to build the first Luggen 7 EV this year. Other than China, Foxconn generates about 30% of its revenue. The company also stated that it was considering establishing plants in Mexico, Vietnam, Indonesia, and Europe.

According to experts, Foxconn can benefit from the increasing competition in the EV space, which has forced Elon Musk's Tesla to reduce the prices of its vehicles. Notably, new companies that cannot negotiate the supply chain or lack manufacturing experience can also outsource production.

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.