HNHPF - Foxconn EV unit sees India Thailand as targets for new small car - report
2023-08-01 06:16:45 ET
Foxconn Technology's ( OTCPK:FXCOF ) EV platform unit Mobility in Harmony (MIH) aims to target India or Thailand for the manufacturing of a small battery-powered car under development, Reuters reported citing MIH's CEO Jack Cheng.
Foxconn's — the iPhone assembler which is formally known as Hon Hai Precision ( OTCPK:HNHAF ) ( OTCPK:HNHPF ) — unit MIH will be open to work with its parent or another company to build the new three-seat EV priced below $20K, and tailor-made for a corporate delivery fleet, according to Cheng.
MIH has been in discussions with convenience stores, car rental fims and courier companies ahead of the launch of its first prototype EV at Japan's largest auto trade show in October, Cheng noted.
"You build where the potential market is...In India or Southeast Asia, you have a huge volume opportunity right now," said Cheng, according to the report .
The MIH chief did not say which companies were in discussions with MIH, but noted that India and Thailand are potential contenders for manufacturing sites. Cheng added that he expected India to be crucial to MIH's longer-term growth.
The car is expected to priced between $10K and $20K, the report noted.
Foxconn is yet land the type of deal which would demonstrate the EV market can be opened to the kind of contract manufacturing which it came to dominate in consumer electronics for Apple's iphone. The Taiwanese company set up the MIH consortium of around 2,600 suppliers two years ago with the intention of creating an open platform.
Cheng, who was a co-founder of Chinese EV manufacturer NIO — noted that MIH had "not seen success yet" but said returns for participating suppliers would come with orders for a range of new EVs known as Project X. The plan is to use low-cost, shared platforms to enable corporate fleet operators to order custom-made EVs, according to the report.
MIH intends to start manufacturing of the three-seat EV about 18 to 24 months after the prototype is introduced in October. A six-seat EV is scheduled for 2024 and a nine-seat model in 2025, the report noted.
In June, Indian Prime Minister Narendra Modi met Tesla CEO Elon Musk after which the billionaire hinted at making Tesla ( TSLA ) available in India "as soon as humanly possible." The company, reportedly, is in advance discussions with the Indian government about an investment proposal to set up a factory to produce about 500K EVs annually.
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Foxconn EV unit sees India, Thailand as targets for new small car - report