Foxconn, which is famous for assembling iPhones and other mobile devices, has made a big move into the world of electric vehicles. It’s set up an R&D lab that will prototype cars that could be sold by established automakers or even the new crop of startups entering this space.
Foxconn is hoping to transform itself and make a similar transition with EVs. The company is aiming to make up to forty-five percent of the world’s vehicles and match the success it has achieved in electronics.
Foxconn’s first electric vehicle prototypes were introduced last year, with a roster of automotive clients lining up almost immediately.
Earlier this year, iPhone manufacturer Foxconn made the acquisition of Lordstown Motors, a former General Motors plant in Ohio that is struggling with manufacturing difficulties. Today, Foxconn-made electric pickup trucks have started shipping out to customers for those looking for greener technology and better efficiency.
Fashion-forward EV upstart Fisker has teamed up with Foxconn to build a second vehicle in Ohio by 2024. They’ve also signed on to produce prototypes for yet another startup, Indi Electric Vehicles.
After Volkswagen announced its plans for electric models that are scheduled to hit US roads soon, the company is considering a partnership with Foxconn.
Foxconn’s switch to focusing on electric vehicles is a wise investment into a hot market for the company, according to Bill Russo, CEO of Automobility, an auto-industry consulting firm.
Foxconn is already a successful company in manufacturing products that are capital-intensive and need large volumes of components in order to be produced.
In the future, vehicles will be increasingly digital and computerized. Foxconn is becoming more familiar with the electronics that are required to build high-quality cars.
The affirmation of Foxconn’s entry into the EV market is a boon for startups that had to put up a lot of cash for manufacturing plants. Services like Rivian and Lucid, which spent big on the venture, won’t have such access to funds.
The EV market is booming, and Foxconn is a major player in this market. Foxconn’s entry into the EV space is a testament to the company’s commitment to innovation and a sign that the company is well-positioned to take advantage of the new opportunities in the industry.
Furthermore, the EV manufacturers that Foxconn works with will benefit from the company’s expansive network of suppliers, which could help reduce their costs and speed up the production process.
This step could be a game changer for the EV industry and open up the market to more players.
Tesla is the biggest player in the EV market, but Foxconn’s entrance could change the game. Foxconn’s entry into the market can provide competition and could help bring down prices for consumers.
It could also help to stimulate the EV demand and bring more players into the space. Also, the expansion will be easier in terms of sales.