Young Liu, chairman of Foxconn Technology Group, speaks in front of a Model C electric vehicle during an event in Taipei, Taiwan, Tuesday, Oct. 18, 2022. Liu said he hopes one day Foxconn can make cars for You’re here.
I-Hwa Cheng | Bloomberg | Getty Images
foxconthe largest assembler of Apples iPhones, one day wants to build cars for You’re heresaid the company’s CEO, as it pushes further into electric vehicle manufacturing.
Hon Hai Technology Group, the official name of Foxconn, on Tuesday launched two prototype electric vehicles: the Model V pickup truck and the Model B sports crossover sedan.
But Foxconn does not want to sell its own brand cars. Instead, he wants to design and manufacture vehicles for other automakers. The company claims it can cut the design time of a car in half and reduce the development cost by a third for a car manufacturer wishing to use its services.
The Taiwanese firm has big ambitions. Young Liu, CEO and chairman of Foxconn, said on Tuesday the company is aiming for a 5% global market share in electric vehicle manufacturing by 2025, adding that he hopes Tesla will be a customer.
“I hope one day we can make Tesla cars for Tesla,” Liu said.
Tesla currently manufactures its own cars at its factories around the world – at its US sites and in Berlin and Shanghai.
Elon Musk’s Tesla was not immediately available for comment when contacted by CNBC.
Over the past two years, Foxconn has ramped up its electric vehicle business.
Last year, the company unveiled three prototype cars. Two of them are currently on the road. The Model T electric bus is part of the public transportation system in Taiwan, and the Model C is a production vehicle under the Luxgen n7 brand of Taiwanese automaker Yulon Motor.
Liu said he wants Foxconn customers to sell “a lot of electric vehicles.”
Foxconn has built its business over decades in the manufacture and assembly of consumer electronics. But the company is now trying to branch out into new areas, with electric cars a key focus.
The five concept cars show that Foxconn “can design and build electric vehicles that look good and can withstand safety,” Liu said.
Part of its current strategy is to show off its EV capabilities at a time when many companies, especially companies not traditionally in the automotive space, are entering the market.
In China, for example, the smartphone manufacturer Xiaomi and internet business Baidulaunched electric car companies with the goal of mass-producing vehicles.
Foxconn could be an option for companies looking to launch electric car businesses without needing to invest huge investments in their own design and manufacturing businesses.