Technology

Foxconn plans to manufacture electric vehicles in India: Report

Foxconn plans to manufacture electric vehicles in India: Report

Apple’s contract manufacturer, Foxconn is planning to manufacture electric vehicles in India as a part of its plans to expand its manufacturing supply chain outside China in South East Asia.

Sources told The Economic Times that the Foxconn‘s EV-manufacturing arm, Foxtron, is planning to expand its manufacturing plants to various locations in South East Asia, which includes locations such as India, Vietnam and Indonesia.

At present, the company has a manufacturing facility in Sriperumbudur, outside Chennai, that exclusively manufactures iPhones for Apple. The company has a separate plant, which is operated by Foxconn’s Indian entity, Bharat FIH, that manufactures phones for Xiaomi. Now, the company is looking to set up a separate plant for manufacturing EVs in Tamil Nadu.

The report says earlier, Foxconn had no plans of foraying into the electric vehicle market in India. However, the rising demand for electric vehicles in India prompted the company to change its plans. “Initially there was no plan to manufacture in India but recently Foxconn has been studying the Indian automotive market and is considering foraying into India as well as Vietnam and Indonesia to expand its manufacturing base to other markets,” a source told the publication.

It is worth noting that Foxconn is relatively new in the electric vehicle space. Last year, the company bought a manufacturing plant for producing EVs for the North American market. Now, the company plans to replicate a similar model in South East Asia by setting up EV manufacturing plants in India, Indonesia and Vietnam.

Tesla in India

It is worth noting that the Foxconn’s plans of foraying in the EV market in India come at a time when Tesla is struggling to debut in the country. The electric car-maker has been in the talks with the Indian government for a long time for making its EVs available in the Indian market. However, high import duty of around 60 percent on cars priced $40,000 and lower and of 100 percent on the cars priced above $40,000 levied by the government has prevent the company from making a debut in the country.

The government, on the other hand, has asked the carmaker to setup a manufacturing plant in India in order to sell its cars in India — a move that has not gone well with the Tesla CEO Elon Musk, who in a recent tweet said that Tesla won’t manufacture cars in India unless it is allowed to sell its EVs and services first.

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