Industrial Automation Magazine India

Foxconn aggressively carving out a niche in APAC EV industry, says GlobalData

Published on : Saturday 07-08-2021

Foxconn has been aggressively trying to carve out a niche in the Asia-Pacific (APAC) automotive industry.

August 2021 – The rapid growth of electric vehicles (EVs) has transformed the traditional automotive industry business due to the merging boundaries between automotive technology, electronics and information & communication technology. Over the past few years, technology companies, such as Foxconn have been aggressively trying to carve out a niche in the Asia-Pacific (APAC) automotive industry with their products and services in the EV segment, says GlobalData, a leading data and analytics company.

With the launch of software and hardware open electric vehicle platform 'MIH', Foxconn aims to become 'android' of the EV industry and avail manufacturing of various EVs for third parties on its scalable and customisable platform. It has partnered with key automakers in this regard which includes Geely, Byton, Stellantis and Fisker. Additionally, it also aims to launch its own EV brand and supply key hardware and software for EVs.

Bakar Sadik Agwan, Senior Automotive Analyst at GlobalData, comments: ''Foxconn entry is expected to disrupt the APAC EV market. While the traditional automakers are on their transition towards electrification with their set targets, tech companies such Foxconn invading the EV business should be a key concern. Manufacturing capabilities, deep roots in the electronics industry and orchestrated supply chains leave no major challenges for Foxconn to manufacture a vehicle and compete with established brands.

"Foxconn manages an entire 'vertically integrated' supply chain in the electronics industry which includes chipsets – a key component for EVs. This will ensure adequate supply for its future EVs. It has also invested in battery makers developing the 'next-gen' solid-state batteries. The company aims to commercialise solid-state batteries for EVs by 2024. These will offer Foxconn significant competitive benefits over other automakers."