Bangkok. Taiwan-based iPhone manufacturer Foxconn and China’s Huawei Technologies are among the technology giants maneuvering to gain a foothold in the increasingly crowded electric vehicle (EV) sector. Their moves have prompted traditional automakers like Japan’s Nissan and Honda to announce plans to join forces to compete with an influx of ambitious competitors.

Foxconn, also known as Hon Hai Precision Industry, has been expanding its presence in the automotive supply chain, leveraging its expertise in electronics and communications. At the Consumer Electronics Show in Las Vegas last week, Foxtron — its joint venture with Taiwan’s Yulon Motor Co. — showcased the Model B, a sleek EV hatchback, along with its automotive electronics.

In December, Honda and Nissan announced plans to explore a merger. Reports suggest Foxconn’s interest in Nissan may have partly influenced this decision.

From iPhones to Electric Vehicles

Foxconn has made bold claims about its EV ambitions, stating it aims to produce 40 percent of the world’s EVs in the future. Over the past decade, the company has invested nearly $1.3 billion in auto-related acquisitions, according to Mergermarket, a mergers and acquisitions research firm.

Foxconn’s ventures include Foxtron and joint partnerships with Stellantis NV for automotive semiconductors and with Germany’s ZF Friedrichshafen AG for passenger car chassis. It has also invested in Indigo Technologies, collaborated with Blue Solutions on solid-state batteries, and partnered with Italian auto design firm Pininfarina.

Foxconn holds a 34 percent stake in Sharp, which has gradually ventured into the automotive sector. Earlier this year, Foxconn and Sharp introduced an LDK+ (living, dining, kitchen) concept vehicle—a boxy minivan with solar panels, a storage battery, and a large LCD screen.

“Foxconn’s entry into EVs mirrors its plug-and-play strategy in electronics, reflecting the growing convergence of electronics and automotive technologies,” said Vivian Wong, head of Mergermarket’s M&A Analytics for the Asia-Pacific region.

New Tech Players Enter the EV Arena

China’s Huawei Technologies, smartphone maker Xiaomi, and tech giants Alibaba and Baidu are ramping up their EV operations. These companies are leveraging their expertise in advanced technologies as vehicles become increasingly computerized.

Huawei’s EV ventures include partnerships in its Harmony Intelligent Mobility Alliance, such as Luxeed brand EVs with Chery Automobile and Aito brand EVs with Seres Group. Its joint venture with JAC Motor aims to compete with luxury brands like Rolls-Royce and Mercedes-Benz.

Japanese companies are also entering the fray. In addition to Sharp’s partnership with Foxconn, Sony has teamed up with Honda to launch the Afeela sedan, set for pre-sale this year.

As vehicles become more interconnected with smartphones, laptops, and televisions, technology companies see an opportunity to transform the automotive market despite challenges like tariffs and shifting demand.

Nissan, which launched the first mass-market EV, the Leaf, in 2010, remains an attractive partner for newcomers like Foxconn due to its EV expertise and global sales network.

Japanese media and Taiwan’s Central News Agency reported that Jun Seki, Foxconn’s chief strategy officer and a former Nissan executive, held talks with Renault, which owns a 15 percent stake in Nissan. Seki’s background includes roles as Nissan’s chief operating officer and president of its joint venture in China.

However, Nissan CEO Makoto Uchida stated that Foxconn has not directly approached the company about a merger. Foxconn did not respond to requests for comment.

The challenges for Nissan mirror those faced by the entire industry, including competition from Tesla, which produces over half of its EVs in China, and rising Chinese automakers like BYD.

A Rough Road Ahead

While Foxconn has ambitious goals, its EV journey has been anything but smooth. As EV sales growth slows and concerns over affordability and convenience persist, Foxconn faces stiff competition from established leaders like Tesla and BYD.

Foxconn’s attempt to manufacture the Endurance EV truck at a former General Motors plant in Lordstown, Ohio, stumbled when Lordstown Motors filed for bankruptcy in 2023. Another partnership, with Fisker Inc., aimed at producing 250,000 vehicles, ended with Fisker filing for Chapter 11 bankruptcy in June.

Despite these setbacks, Foxconn remains undeterred. The company lists six EV models on its website, including the Model T bus, Model V pickup truck, Model N van, Model B hatchback, and its luxury Model E sedan.

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