FP TrendingJun 01, 2021 18:52:18 IST
Taiwan's Foxconn, which is Apple's main iPhone manufacturer, has announced it is teaming up with state-run energy group PTT Plc. As a part of their deal, Foxconn and PTT have collaborated to make electric cars in Thailand. With this deal, Foxconn makes its entry into the passenger vehicle market. A memorandum of understanding (MoU) has been signed by the firms to collaboratively make electric vehicles and their components for the Southeast Asian market, said a joint statement issued for the announcement. The virtual signing ceremony took place in the presence of Thailand Prime Minister Prayuth Chan-o-cha.
Not divulging any further details on the development, the statement added that as part of the deal, an ‘open platform’ will be made available to provide hardware and software services to other automakers.
"This cooperation with PTT and the Thai government to realize the vision of sustainable development of the EV industry, demonstrates that the MIH ecosystem is growing," Foxconn chairman Liu Young-way said.
The company said it will manufacture about 150,000 vehicles a year, from 2023, in a partnership with US-based electric carmaker Fisker Inc, making it the largest vehicle assembly deal until now.
Last year in October, Liu stated Foxconn aims to provide components or services for 10 percent of the world's EVs by 2025 to 2027. He promised to reduce manufacturing and other costs for car-making with its assembling services as the world's largest contract electronics manufacturer.
Foxconn has ventured into the EV game over the last year or so, announcing deals with manufacturers including Byton, the Zhejiang Geely Holding Group and Stellantis.
Foxconn's EV venture could pose a threat to established automakers, where non-traditional players could use contract assemblers like Foxconn as a shorter pathway to compete in the vehicle market.
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