BANGKOK — Companies like Taiwan’s Foxconn, known primarily for making iPhones, and China’s Huawei Technologies are making significant moves into the electric vehicle (EV) market. This has prompted established automakers, including Japan’s Nissan and Honda, to seriously consider collaborating to deal with these emerging competitors.
Foxconn, officially Hon Hai Precision Industry, has been actively expanding its influence within the automotive supply chain, joining a wave of tech companies that are applying their expertise in electronics and communication to the automotive industry. Recently, Foxconn and Yulon Motor Co., a Taiwanese automobile maker, unveiled their Model B, an elegant EV hatchback, along with advanced automotive electronics at the Consumer Electronics Show in Las Vegas.
Last December, Nissan and Honda announced plans to pursue a merger. This decision might reflect Foxconn’s growing interest in Nissan as it seeks to navigate a competitive market filled with ambitious players aiming to capitalize on the EV boom.
### Foxconn’s Ambitious Plans for Electric Vehicles
Foxconn is eyeing a substantial piece of the global EV market, aiming to produce four out of every ten electric vehicles sold worldwide. Over the last decade, Foxconn has invested around $1.3 billion in automotive-related projects. Besides their venture with Yulon Motor, they hold joint ventures with Stellantis NV for automotive semiconductors and with Germany’s ZF Friedrichshafen AG to manufacture passenger car chassis.
Moreover, Foxconn has teamed up with various firms and invested in technologies that enhance vehicle capabilities, indicating a strategic approach to blending automotive and high-tech advancements.
Foxconn also owns a significant stake in Sharp, another electronics company, which is gradually shifting focus towards the automotive sector. Together, they recently introduced a new concept vehicle that transforms from a transportation tool into a living space complete with solar energy options and large displays.
### The Rise of Tech Giants in the Auto Industry
Other tech firms like Huawei, and e-commerce giants such as Alibaba and Xiaomi, are also stepping into the EV arena. These companies are utilizing their technological strength to create smart and connected vehicles, with Huawei forming joints ventures to innovate within the luxury segment of the market.
Notably, Japanese companies are not left behind either. Sony has partnered with Honda to launch a new electric sedan called Afeela, reflecting the increasing integration of technology and transportation.
### Nissan’s Position in an Evolving Market
Nissan was a pioneer in the mass-market EV space with the introduction of the Leaf in 2010. Despite facing some internal challenges, Nissan holds a wealth of technology and manufacturing capabilities that are attractive to new entrants like Foxconn. Recent reports suggest that Foxconn executives have been in discussions with Renault, a key stakeholder in Nissan, hinting at potential collaborative prospects.
However, Nissan’s challenges illustrate a broader trend across the automotive industry, particularly due to the stiff competition posed by Tesla and rapidly growing Chinese manufacturers like BYD. Many smaller EV startups have struggled to survive in this intense environment, emphasizing the need for established firms to adapt swiftly.
### Navigating Challenges Ahead
The journey for these new entrants has been rocky. As consumer interest in EVs fluctuates amid concerns about their cost and convenience, Foxconn faces a significant challenge in establishing itself against seasoned players like BYD and Tesla. The company’s plans to produce an EV truck in Ohio faltered when Lordstown Motors, a key partner, went bankrupt. Similarly, a partnership with Fisker to manufacture EVs faced setbacks when Fisker itself filed for bankruptcy.
Despite these hurdles, Foxconn appears undeterred, showcasing a lineup of six different EV models on its website, including a bus and a luxury sedan, demonstrating its ambition to carve out a name in the competitive EV market.
