Explore Foxconn’s strategic vision, its goal to produce 5-7 lakh EVs by 2025, and its potential to reshape the global EV market.
In a pivotal move signalling India’s accelerating evolution as a global manufacturing powerhouse, Hon Hai Technology Group, popularly known as Foxconn, delineates plans to expand its presence considerably within the nation. According to the Chairman and CEO, Young Liu, India stands on the cusp of being the “new manufacturing centre of the world”, possibly superseding the development pace set by China in crafting an integrated supplier ecosystem. The decision to establish an electric vehicle (EV) plant in the country is under serious negotiations with the Telangana and Tamil Nadu governments, leveraging the established foundation of its Indian arm, Bharat FIH, which has collaborated with prominent EV companies since 2015.
A burgeoning demand in consumer purchases buoys the expansion. With eyes set on fostering a robust presence in the electric vehicle sector, the company is decisively considering Tamil Nadu as a viable site for the new plant. The envisioned growth is not confined to the EV sector but extends to pivotal areas in electronics, encapsulating products ranging from smartphones to televisions, underlining India’s vast potential in the electronics industry.
In a statement emphasizing the synergistic relationship between India and Taiwan, Liu expressed optimistic foresight on the prospective collaboration, quoting India’s Prime Minister Narendra Modi, who posited ‘IT’ as a representation of the India-Taiwan partnership. Since initiating its operations in India in 2005, the company has embarked on a considerable expansion trajectory, now a predominant manufacturer of Apple devices globally, and a leading producer of iPhones within India. The company plans to instate industrial parks in locations like Karnataka and Telangana to optimise the business climate through collaborative efforts with central and local governments to streamline infrastructure, policies, and legislative frameworks.
With an agenda to roll out 5 to 7 lakh EVs by 2025, capturing about 5% of the global EV market share, it foresees a lucrative opportunity in the expanding EV sector. Already possessing manufacturing units in Ohio, and the US and a production facility in Thailand, Foxconn appears poised to seize a significant portion of the market, particularly benefiting from the burgeoning competition, which has seen giants like Tesla recalibrate their pricing strategies.