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Foxconn sets sights on making EVs in Europe, India, Latin America

Published 10/20/2021, 12:43 AM
Updated 10/20/2021, 09:28 AM
© Reuters. FILE PHOTO: A Foxtron Model E electric vehicle (EV) is seen unveiled at a Foxconn event in Taipei, Taiwan October 18, 2021. REUTERS/Fabian Hamacher
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TAIPEI (Reuters) -Taiwan tech giant Foxconn is looking at making electric vehicles (EVs) in Europe, India and Latin America, including "indirectly" cooperating with German automakers, Chairman Liu Young-way said on Wednesday.

Foxconn, formally called Hon Hai Precision Industry Co Ltd, aims to become a major player in the global EV market and has clinched deals with U.S. startup Fisker Inc and Thailand's energy group PTT PCL.

Speaking to reporters at a business forum in Taipei after unveiling three EV prototypes on Monday, Liu said that due to disclosure restrictions he couldn't provide any details of its plans for Europe, India and Latin America.

"Europe will be a bit faster, I agree with that. But as to where, I can't tell you," he said.

Asked if they would be cooperating with German car firms he said "indirectly", saying the timeline would be Europe first, then India and Latin America, adding that Mexico was "very possible".

Liu has previously mentioned Mexico as a possible EV production site.

He said they would be using what Foxconn refers to as its BOL model, meaning Build, Operate, and Localise - investing with partners to build and operate local factories and then sell to local consumers.

In May, Foxconn and carmaker Stellantis announced a plan https://www.reuters.com/technology/stellantis-foxconn-form-connectivity-focused-car-technology-jv-2021-05-18 to create a joint venture to supply in-car and connected-car technologies across the auto industry.

Foxconn this month bought a factory from U.S. startup Lordstown Motors Corp to make electric cars. In August it bought a chip plant in Taiwan in a move to supply future demand for auto chips.

Foxconn, best known for making iPhones for Apple Inc (NASDAQ:AAPL), has set a target to provide components or services for 10% of the world's EVs by between 2025 and 2027, as it looks to diversify revenue streams away from being a contract electronics maker.

Liu, speaking earlier at the same forum, said Taiwan had a natural edge when it came to making EVs because of its existing strength in software and semiconductors.

"These are the advantages that Taiwan has cultivated for many years and is best at."

© Reuters. FILE PHOTO: A Foxtron Model E electric vehicle (EV) is seen unveiled at a Foxconn event in Taipei, Taiwan October 18, 2021. REUTERS/Fabian Hamacher

Foxconn's shares closed up 0.5% on Wednesday, outperforming a 0.1% fall on the broader market.

They are up almost 17% since the start of the year.

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