Foxconn, a subsidiary of Hon Hai Technology Group, is progressing toward the automotive industry, particularly in electric vehicles (EVs). On July 24, the company announced a strategic cooperation agreement with the Henan provincial government, planning to establish trial production plants for EVs and solid-state batteries in the Zhangzhou Airport Economic Comprehensive Experimental Zone. This initiative includes creating a high-end demonstration production line, aiming to serve renowned automobile brands globally. The investment, approximately 1 billion yuan (138 million USD), will span about 700 acres in Zhengdong New District, featuring several centers, including a business headquarters, R&D center, engineering center, industrial research institute, marketing center, and supply chain management center.
Foxconn’s interest in the automotive sector dates back to 2010, when it supplied components for Tesla. Although the company has showcased various vehicle models, such as the Model T bus, Model V pickup truck, Model C SUV, Model E sedan, and Model B hatchback, none have yet entered production. The joint venture Foxtron, formed with Taiwan’s Yulon Auto Group, is targeting the North American market with the Model C SUV by 2025. Additionally, Foxconn has acquired the Lordstown car factory in Ohio, USA, formerly owned by General Motors. The company established an NEV company in Henan province in January 2024, further solidifying its automotive ambitions. Despite its success in electronics, Foxconn’s entry into EV manufacturing faces challenges due to its lack of experience. However, the growing trend of contract manufacturing in China, as seen in collaborations like Nio with JAC and Xiaomi with BAIC, may offer a viable path for Foxconn in the automotive sector.
