Foxconn, renowned as the maker of iconic Apple iPhones, has set its sights on India’s electric vehicle (EV) manufacturing sector. This marks a significant move for the Taiwanese contract manufacturer, as it plans to establish a production line this year specifically catering to the EV two-wheeler market in Southeast Asia. Indian state governments are actively engaged in talks with Foxconn to aid its ambitious EV manufacturing plans.
Foxconn’s EV Plans in India
In its recent annual report, Foxconn revealed its intention to foray into the EV manufacturing space in India. The company will receive support from India to establish the production line, signaling its explicit commitment to expand its EV manufacturing ambitions in the country. Sources indicate that an Indian delegation will soon visit Taiwan to hold discussions with Foxconn executives regarding their EV plans. However, it remains uncertain whether Foxconn will engage in contract manufacturing for multiple brands or pursue a joint venture with a single Indian auto giant.
Choosing Maharastra as a perfect base Base
Foxconn is keen on Maharashtra as a base for EV manufacturing, but there have been some challenges in doing so. As a result, the company is considering Tamil Nadu, which already boasts an established auto manufacturing hub and where Foxconn has a presence. Additionally, Telangana is also under consideration due to its proactive outreach and incentives for businesses.
Aiming to Become the Android of EV Ecosystem
Foxconn is adopting the “Build-Operate-Localise (BOL) model” for its EV manufacturing efforts. The company’s goal is to become the Android of the EV ecosystem by building a vertical platform, including manufacturing, hardware, component manufacturing, and battery management. Through its MIH (Mobility in Harmony) platform, Foxconn plans to collaborate with local firms to foster innovation and openness in the automotive industry, breaking the monopoly of a few OEMs controlling R&D and supply.
Global Ventures and India’s Appeal
Having earned its reputation as Apple’s largest contract manufacturer, Foxconn has already initiated car projects with various entities globally. However, India’s favorable demographics, large consumer market, and government initiatives such as “Make in India” are attracting companies like Foxconn to invest in EV manufacturing facilities within the country. The entry of low-cost contract manufacturers like Foxconn is expected to boost the growth of the electric two-wheeler market struggling to scale up.
Foxconn’s decision to enter India’s EV manufacturing space has stirred excitement and anticipation in the automotive industry. With its commitment to foster collaboration and innovation, Foxconn aims to become a significant player in the EV ecosystem. As India’s EV market continues to grow, such investments by global giants like Foxconn are set to propel the country towards becoming a thriving EV manufacturing hub.