Foxconn Electric Vehicle Venture Eyeing India Or Thailand For New Small Car Facility

Foxconn's EV platform unit Mobility in Harmony (MIH) would be willing to work with its parent or another company to build the new three-seat EV priced below $20,000

MIH plans to start production of the three-seat EV about 18 to 24 months after the prototype is unveiled in October.

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Taiwanese company Foxconn's venture attempting to make a standardised electric vehicle platform is eyeing India or Thailand for the production of a small battery-powered car under development, the unit's chief executive told Reuters. According to the report, the firm’s EV platform unit Mobility in Harmony (MIH) would be willing to work with its parent or another company to build the new three-seat EV priced below $20,000 and tailor-made for a corporate delivery fleet, MIH CEO Jack Cheng said.

Cheng said that MIH has been in talks with convenience stores, car rental companies and courier companies ahead of unveiling its first prototype EV at Japan's largest auto trade show in October. He, however, declined to name the firms in talks with MIH, but said the car would be priced between $10,000 and $20,000.

India and Thailand are likely contenders for production sites, Cheng said, adding that he expected India to be crucial to MIH's longer-term growth. "You build where the potential market is...In India or Southeast Asia, you have a huge volume opportunity right now," Cheng said, calling India a potential "emerging power for the next generation" in the EV sector.

MIH had not previously described its manufacturing strategy or the potential customers for its new vehicle. Since 2021, Foxconn has had a joint venture with Thailand's state-energy company PTT centred on EVs, an area of focus for the Southeast Asian country's government.

Foxconn has so far failed to land the kind of deal that would show the EV market can be opened to the type of contract manufacturing that Foxconn came to dominate in consumer electronics for Apple's iPhone. Foxconn established the MIH consortium of some 2,600 suppliers two years ago with the aim of creating an open platform that could become the equivalent of Google's Android operating system for EVs.

MIH plans to start production of the three-seat EV about 18 to 24 months after the prototype is unveiled in October, Cheng said. A six-seat EV is scheduled to follow in 2024 and a nine-seat model in 2025.

Cheng conceded MIH had "not seen success yet" but said returns for participating suppliers would come with orders for a range of new EVs called Project X. The idea is to use low-cost, shared platforms to allow corporate fleet operators to order custom-made EVs. So far, that model is largely untested, and analysts have said the best opportunity for a new EV entrant like Foxconn could close in the next few years as established automakers and start-ups ramp up their own production.