Foxconn Eyes India As Its Third Global Hub For Electric Vehicle Manufacturing: Report

Foxconn Technology Group, the largest contract electronics manufacturer in the world, is considering India as its third global hub for electric vehicle (EV) contract production.

This move is part of the company's plan to supply 500,000 to 700,000 EVs by 2025, which would represent 5 percent of total electric vehicle sales worldwide.

Already having acquired a manufacturing unit in Ohio, US, for $230 million, Foxconn has the capacity to produce 500,000 to 600,000 vehicles annually.

Additionally, the company has a factory in Thailand, established in a joint venture with Thailand's energy giant PTT.

The factory has an initial production capacity of 50,000 vehicles per year, with the potential to scale up to produce 150,000 units, the Business Standard reported.

Foxconn, according to a recently released annual report of the company, is expanding its operations from assembling commercial EVs and e-buses to include passenger car production this year.

The Taiwanese company has been in discussions with the state governments of Telangana and Tamil Nadu to establish an EV plant. A decision on this matter is expected to be made soon, the financial daily reported.

Foxconn has partnered with Yulon Motors, Taiwan's largest automaker, to manufacture the first EV under the Luggen 7 brand this yar.

Around 30 percent of Foxconn's revenue comes from countries other than China, and the company is reportedly also considering setting up production facilities in Mexico, Vietnam, Indonesia, and Europe.

According to the report, experts believe that Foxconn can take advantage of the increasing competition in the EV industry, which has led to Tesla reducing the prices of its cars.

Additionally, new companies without supply chain negotiation capabilities or manufacturing experience can also outsource their production needs to Foxconn.

Foxconn, the largest electronics manufacturing service provider in India, could have a significant advantage in India.

With its status as the largest contract manufacturer of iPhones for Apple in India and export markets, Foxconn has established itself as a major player in the industry.

Bharat FIH, the Indian arm of Foxconn, has been actively involved in producing electronic components for EV two-wheeler companies like Ather Energy and Ola Electric since 2015.

In addition to its current operations, Foxconn has plans to establish a compound semiconductor fab plant. This plant will focus on producing gallium nitride and silicon carbide chips, which are critical components for the electric auto industry.