Foxconn’s EV division seeks India, Thailand as a potential market for small cars

The manufacture of a small battery-powered automobile under development would take place in Thailand or India as part of Foxconn's venture's effort to create a standardised electric vehicle platform, the chief executive of the company, reported.

According to Mobility in Harmony’s (MIH’s) CEO Jack Cheng in an interview with Reuters, the Taiwanese business's

EV

Prior to revealing its first prototype EV at Japan's premier auto trade exhibition in October, MIH has been in negotiations with convenience stores, automobile rental agencies, and courier services, Cheng revealed.

He wouldn't say which businesses were in discussions with MIH, but he did say that the automobile would cost between $10,000 and $20,000. He said that Thailand and India are plausible candidates for production locations and predicted that India will be essential to MIH's long-term growth.

"You build where you anticipate the market to be...You now have a sizable volume opportunity, Cheng continued, referring to India as a possible "emerging power for the next generation" in the EV market.

The possible buyers of MIH's new car or its production plan were not previously disclosed. Since 2021, Foxconn has collaborated on an EV-focused joint venture with Thailand's government-owned energy firm PTT which is a focus for the government of the Southeast Asian nation.

For its part, Foxconn has thus far been unable to get a deal that would demonstrate that the EV market can be opened up to the kind of contract manufacturing that Foxconn rose to prominence in consumer electronics for Apple's iPhone. Foxconn launched the 2,600-member MIH consortium two years ago with the intention of developing an open platform that might eventually replace Google's Android operating system for electric vehicles.

Although Cheng acknowledged MIH has "not seen success yet," he predicted returns for participating suppliers with orders for a variety of new EVs dubbed Project X. Corporate fleet operators will be able to buy specially designed EVs using low-cost, shared platforms.

After the prototype is revealed in October, MIH expects to begin manufacturing the three-seat EV, Cheng added. In 2024 and 2025, respectively, a six-seat and a nine-seat EV are planned. In a best-case scenario, it would take MIH four years or more from its creation to its first sales, according to its schedule.

However, Cheng, who co-founded the Chinese electric vehicle manufacturer NIO and oversaw Fiat's joint venture in China before joining Foxconn, claimed that Tesla's success with its sizable Shanghai facility demonstrated how rapidly an EV manufacturer could grow up.

"I'm creating another Shanghai, possibly in India," Cheng said. "If this is a Foxconn plant, great, it's the mother company, and we put it in the Foxconn plant," was the response. Give it to the India factory if it is a nearby facility and is even more competitive.

Foxconn, which now only makes a small number of EVs, has set a preliminary goal of capturing 5% of the worldwide market by 2025. According to Cheng, MIH's sales will contribute to Foxconn's goal.