Foxconn EV venture to make affordable electric car platform
Foxconn is a Taiwanese company known for its contract manufacturing in the consumer electronics industry, now progressing towards EV market. Its EV platform unit, Mobility in Harmony (MIH), aims to create a standardised electric vehicle platform and is focusing on producing a small, three-seat battery-powered car priced around $10,000 (Rs. 8 lakhs).
MIH’s CEO, Jack Cheng, revealed that the company is eyeing India and Thailand as potential production sites for the new affordable EV. The vehicle is designed to cater to corporate delivery fleets and will be priced between $10,000 and $20,000.
In preparation for its debut, MIH has been engaging in talks with convenience stores, car rental companies and courier companies. The first prototype of the EV is scheduled to be unveiled at Japan’s auto trade show in October this year.
Cheng emphasised the importance of choosing India or Southeast Asia as the manufacturing location due to the significant growth potential in these markets. India, in particular, is seen as an emerging power in the EV sector and a crucial player for MIH’s long-term growth.
Foxconn, in collaboration with Thailand’s state-energy company PTT, has been involved in the EV industry since 2021 but it has yet to secure a major deal in the market. The company formed the MIH consortium with over 2600 suppliers, aiming to establish an open platform similar to Google’s Android operating system for EVs.
MIH’s strategy involves creating low-cost, shared platforms to allow corporate fleet operators to order customised EVs. Some analysts suggest that the best opportunity for new entrants in the EV market may diminish as established automakers and startups ramp up their own production.
MIH plans to begin production of the three-seat EV within 18 to 24 months after unveiling the prototype in October. Following this, a six-seat EV is scheduled for 2024 and a nine-seat model is planned for 2025.
While MIH’s timeline may take over four years from its founding to achieve first sales, Cheng remains optimistic, drawing inspiration from Tesla’s success in rapidly scaling up its production in Shanghai.
Cheng envisions building another production plant, potentially in India, to expedite the scaling process. Foxconn’s initial target is to secure a 5 percent share of the global EV market by 2025 and MIH’s sales will contribute towards achieving this goal.