From China to Chennai: Foxconn plans to produce electric vehicles in India

22 Jun 2022 , 01:55 PM

As part of a strategy to diversify the supply chain beyond China, Taiwanese electronics contract maker and Apple Inc. supplier Foxconn intends to produce electric vehicles (EVs) in India.

According to the Economic Times on June 22 citing unidentified sources, Foxconn's electric vehicle business, Foxtron, is exploring establishing a center in India as well as other locations in South Asia, such as Vietnam and Indonesia.

Bharat FIH, a division of Foxconn, now has two factories in Sriperumbudur, Tamil Nadu, which is on the outskirts of Chennai and produces, among other things, Xiaomi phones and Apple iPhones. The Foxconn firm has reportedly expressed interest in producing items other than phones for customers and for use internally.

According to the sources, Tamil Nadu wants to entice the company to make further investments in the state. Source, Moneycontrol was unable to confirm the claim.

Foxconn is also researching the vehicle industry in India and estimating future EV demand. It purchased a North American EV development site in 2021 where it would produce goods for the Fisker hybrid EV brand.

The capital markets regulator granted Bharat FIH permission to conduct an IPO earlier this month (IPO). The Bharat FIH IPO consists of a new share issuance for Rs 2,502 crore and a promoter group stake sale for the same amount.