Thu, Apr 13, 2023 page12

• Hon Hai sets EV model rollout goal

  FOR US$30,000: The firm plans to introduce up to two new models per year through its CDMS business model, as it targets a market segment with ‘massive volume’

  • By Lisa Wang / Staff Reporter
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  Hon Hai Precision Industry Co (鴻海精密) is planning to introduce up to two electric vehicle (EV) models per year as it targets the mass market with retail prices of about US$30,000 per unit, the company said yesterday.

  The iPhone assembler set the goal as its EV plant in Ohio is to start mass production next year, giving it the capacity to build EVs for customers under the contract design and manufacturing services (CDMS) business model.

  “This [US$30,000 EV] is a segment with a massive volume. It is our priority to offer CDMS to tap into this segment,” Hon Hai spokesman James Wu (巫俊毅) told reporters on the sidelines of the annual Autotronics Taipei show at the Taipei Nangang Exhibition Center’s Hall 1.

  

  Visitors look at an electric vehicle chassis developed by Foxtron Vehicle Technologies Co, a joint venture between Hon Hai Precision Industry Co and Yulon Motors Co, on the first day of the Autotronics Taipei trade show at the Taipei Nangang Exhibition Center’s Hall 1 yesterday.

  Photo: CNA

  Hon Hai expects its first EV, dubbed Model C, to enter mass production in the fourth quarter of this year in preparation for customer delivery next year, Wu said.

  Last month, the company started shipping fully electric Monarch tractors from its Ohio plant to Zimeno Inc, he said.

  Next year, the factory is likely to start producing mainstream EV models at affordable prices, Wu said.

  Aside from offering CDMS, Hon Hai also provides contract manufacturing services for customers, he said.

  The company aims to focus on making EVs designed by downstream companies, a business model similar to its iPhone production for Apple Inc, he added.

  Hon Hai has said it is in talks with three vehicle start-ups and two established automakers to produce EVs.

  Wu did not disclose the latest progress on that plan.

  Meanwhile, the electronics manufacturing giant is making progress in expanding its EV footprint globally, including in Thailand and Indonesia.

  In Thailand, the company has teamed up with PTT PCL to set up an EV joint venture named Horizon Plus Co, Wu said.

  The joint venture’s plant in Chonburi Province is to start operations in May next year, he said.

  Horizon Plus is planning to invest about 37 billion baht (US$1.1 billion) in setting up EV production lines, Hon Hai said in November last year.

  The plant would have an initial capacity of 50,000 units per year, but the capacity could triple to 150,000 vehicles by 2030, as EV demand in ASEAN members is expected to increase, it said.

  In Indonesia, Ho Hai has formed a joint venture with PT Indika Energy Tbk to manufacture EVs and batteries.

  Hon Hai showcases three concept EVs and key components during its debut at the Autotronics Taipei, which is running through Saturday, with its online exhibition continuing until Sunday next week.

  Wu said the firm has shortened the development time for EVs to two to three years, as compared with three-and-half to four years at established automakers.

  He attributed the progress to the introduction of an “open ecosystem,” which he said is common practice in the information communication and technology industry.
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