Foxconn, a leading electronics contract manufacturer, is exploring the possibility of establishing an electric vehicle (EV) manufacturing facility in India, with Tamil Nadu being considered as a potential location for the plant.
Young Liu, the chairman and CEO of Hon Hai Technology Group, Foxconn’s parent company, has revealed the company’s plans to set up an EV factory in India. This announcement comes as Foxconn is also planning to build EV factories in Ohio and Thailand.
According to media reports, Foxconn has been in discussions with the Tamil Nadu government regarding its EV manufacturing plans. However, it is still unclear whether Foxconn intends to engage in contract manufacturing for other EV companies or if it plans to develop and sell EV products under its own brand.
Liu emphasised India’s potential to become a major global manufacturing hub. He noted that the transition from China to India as a manufacturing center would take some time but is expected to happen more rapidly than the three decades it took for China to establish itself as a manufacturing powerhouse.
Foxconn’s Indian arm reported an annual turnover of USD 10 billion at the end of the second quarter, with metrics such as revenue, employee count, and investments experiencing exponential growth since the company’s entry into India.
Liu mentioned that Foxconn’s annual revenue is USD 200 billion, and the company sees substantial potential in India’s market size. He suggested that several billion dollars in investment is just the beginning if they can fully implement their plans in India.
Foxconn has primarily been involved in the information and communication technology assembly business, but due to geopolitical tensions between Beijing and Washington DC, the company is shifting its focus to India.
Earlier this year, Foxconn began construction on a USD 500 million manufacturing facility in Telangana’s Kongar Kalaan. Discussions have also taken place between Foxconn and Tamil Nadu Chief Minister MK Stalin about the possibility of establishing a unit in the state.
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