Taiwan-based manufacturing giant Hon Hai Precision Industry Co (鴻海精密), which unveiled three electric vehicles (EVs) on Monday, expects its EV business to generate NT$1 trillion (US$35.8 billion) in sales for the group in five years.
Speaking to reporters after the introduction of the three EV prototypes, Hon Hai chairman Young Liu (劉揚偉) said that the company, known as Foxconn Technology Group (富士康科技集團) globally, expects its EV business to begin generating revenue next year at the earliest.
Sales momentum is expected to pick up in 2023 and revenue could potentially reach NT$1 trillion in five years, Liu said.
Photo: Ritchie B. Tongo, EPA-EFE
At the Hon Hai Tech Day on Monday, the iPhone assembler launched three self-developed EV models: a Model C sports utility vehicle, a flagship Model E passenger car and a Model T electric bus.
The venture, named Foxtron Vehicle Technologies Co (鴻華先進), is a collaboration between Hon Hai and Yulon Motor Co (裕隆汽車).
Foxtron is promoting the company’s MIH Open Platform for EV development, as Hon Hai aims to transform the platform into the “Android of the electric vehicle industry” in its bid to penetrate the global EV market.
As of June, more than 1,680 companies had joined the platform, including Bosch and Continental AG — both of which manufacture automotive parts — and tech giants Microsoft Corp and Oracle Co.
The open platform is expected to provide business opportunities to the members, Liu said.
In February, Hon Hai announced that it had joined forces with Fisker Inc, a US EV maker, to build a new EV model under the US brand, with the goal of starting mass production by the fourth quarter of 2023.
While Fisker has its own EV platform, if the MIH Open Platform could provide competitive solutions in chassis production, Liu said that he expects the US brand to consider switching platforms.
The EV business is so huge that Hon Hai plans to manufacture its EVs regionally, with plants in the US, South America, Europe, the Middle East, India, Southeast Asia, East Asia and China, while using the common auto chassis from the platform, he said.
The diversification of manufacturing allows Hon Hai to cater to different markets and lower production costs, Liu added.
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