Foxconn Technology Group is known for making the iPhone and it is now dipping its toe into the electric car market waters with an estimated $800 million investment. The money will be used to develop electric car manufacturing in China’s Shanxi province. The Taiwanese company already has a pair of factories in the region; one assembles smartphones while the other produces automation equipment and robots.
Foxconn Assembly Line in China. Image: Google UK
Foxconn normally focuses on manufacturing electronics for its list of famous clients including Amazon, Sony and Microsoft but it is expanding into new business sectors and sees the electric car market as an ideal way to boost its profits. At present, Foxconn makes up to 50% of its revenue from the assembly of Apple products.
In June 2014, Terry Gou, the company’s CEO, said Foxconn wants to create electric cars with a price tag of less than $15,000 to make them easily affordable. The company has been creating electric car batteries for some time already and Gou said there are already a wide range of customers for these batteries. Foxconn is also responsible for the touchscreen panels found in Tesla electric cars.
Gou was not forthcoming when probed for exact details on the company’s electric car production plans including potential partnerships. However, it is believed Foxconn could be targeting China for electric car sales as it is a huge market and the Chinese Government is actively trying to promote the sale of electric cars.