View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
June 1, 2021

Hon Hai in EV joint venture with Thailand’s PTT

Apple iPhone assembler Foxconn and Thailand’s state-owned energy conglomerate PTT have signed an agreement to establish a joint venture to produce electric vehicles in Thailand.

By David Leggett

Taiwan’s Hon Hai Precision Industry Company (better known as Foxconn ) and Thailand’s state-owned energy conglomerate PTT have signed a preliminary agreement to establish a joint venture to produce electric vehicles (EVs) in Thailand, according to reports in Taiwan.

Free Report
img

What does the future hold for the US electric vehicles market?

The US Electric Vehicles (EV) market has established itself as one to watch. Despite China maintaining the number one spot, the US holds significant standing as one of the major EV markets, with GlobalData’s whitepaper identifying a strong growth trajectory within the forecast period. This report further analyzes the trends, market drivers, and government incentives set to influence and facilitate the market.   This report also looks beyond the US and touches on environmental concerns set to drive the EV market worldwide.   Want to find out more? This report demonstrates GlobalData Explorer’s sector analysis capabilities, showing how you can:  
  • Get historical and forecast market sizing data, with country specific insight for 22+ of the world’s largest industries
  • Track sector dealmaking activity, to view aggregate volumes, specific deals and top investors for all major deal types in M&A, Capital Raising, and Partnerships
  • Analyze news from GlobalData Explorer’s News Database – enable screening and alerts by industry, company, geography and news sentiment for filtered insight
  • Identify and track the key disruptive trends that are keeping the top digital thought leaders talking through social media analytics
  Consult this report now to find out how you and your company can benefit from our Explorer platform.
by GlobalData
Enter your details here to receive your free Report.

The two companies confirmed that a memorandum of understanding (MOU ) was signed remotely by Hon Hai’s chairman Young Liu and PTT’s CEO Auttapol Rerkpiboon earlier this week. The agreement follows previously held face-to-face meetings between the two executives.

The new joint venture company aims to help strengthen Thailand’s position in the region’s emerging EV market, supporting the Thai government’s target for EVs to account for 30% of the country’s total passenger vehicle output by 2030.

Mr Rerkpiboon told reporters “the expansion of EV production will provide opportunities to enhance Thailand’s transportation system with reduced emissions”.

Hon Hai, better known as Apple main iPhone contract manufacturer Foxconn , has made significant efforts to diversify into the global EV sector in the last two years and has developed an working prototype of an EV platform for use by thirds-party vehicle manufacturers.

Earlier this year it launched a programme to establish an effective supply chain for the platform, with more than 600 potential suppliers signing up to the project. The company has so far agreed to set up an EV manufacturing joint venture with China’s Zhejiang Geely Holding Groupand separate EV joint ventures with US startup FiskerInc and China’s Byton Ltd.

It also has an agreement in place with Stellantis to jointly develop digital vehicle cockpits.

Mr Liu said Hon Hai will help Thailand create its own EV supply chain and provide the technology transfer needed for the nation’s existing automotive industry to transition to EV production.

A final deal between the two companies is expected to be announced in the third quarter of 2021. PTT is cited by Bloomberg as saying the initial investment in the joint venture will be around US$1bn, possibly rising to US$2bn later on.

Free Report
img

What does the future hold for the US electric vehicles market?

The US Electric Vehicles (EV) market has established itself as one to watch. Despite China maintaining the number one spot, the US holds significant standing as one of the major EV markets, with GlobalData’s whitepaper identifying a strong growth trajectory within the forecast period. This report further analyzes the trends, market drivers, and government incentives set to influence and facilitate the market.   This report also looks beyond the US and touches on environmental concerns set to drive the EV market worldwide.   Want to find out more? This report demonstrates GlobalData Explorer’s sector analysis capabilities, showing how you can:  
  • Get historical and forecast market sizing data, with country specific insight for 22+ of the world’s largest industries
  • Track sector dealmaking activity, to view aggregate volumes, specific deals and top investors for all major deal types in M&A, Capital Raising, and Partnerships
  • Analyze news from GlobalData Explorer’s News Database – enable screening and alerts by industry, company, geography and news sentiment for filtered insight
  • Identify and track the key disruptive trends that are keeping the top digital thought leaders talking through social media analytics
  Consult this report now to find out how you and your company can benefit from our Explorer platform.
by GlobalData
Enter your details here to receive your free Report.

Topics in this article:
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Auto