Foxconn is planning to manufacture the cars, but the design and sale will be done by third party companies, similar to iPhones.
The Taiwanese global electronics contract manufacturer Foxconn is now aiming to set-up a state-of-the-art 700 acre campus in Zhengzhou to manufacture electric vehicles. Foxconn, known for manufacturing Apple’s iPhone, is doing its core business from Zhengzhou, which is also known as the ‘iPhone city’.
In the capital of Henan Province, the entire infrastructure, all the suppliers, and factories are located where more than 25,000 employees produce the world’s largest volume of Apple’s iPhones. Now, speaking of the new EV plant, the question is who will be potential customers of Foxconn?
Interestingly, the Cupertino tech giant after spending more than 10 billion, has canceled the much-anticipated electric car project. With time, rivals in China have changed its business strategy to move ahead of the competition curve. For Foxconn, the plan to set-up EV manufacturing is to reduce its major dependence on Apple’s contract. Moreover, iPhones sales in China have reduced drastically and post COVID, Apple and various other device makers have shifted their manufacturing base from China to India and other countries.
Foxconn is planning to manufacture the cars, but the design and sale will be done by third party companies, similar to iPhones. Reports also surfaced that the company has already received manufacturing orders from Taiwanese auto firm Luxgen. Xiaomi and Huawei, China’s top smartphone brands have outpaced Apple and are now selling electric vehicles as well. After Foxconn proclaimed its investment, Xiaomi has announced another car.
