Foxconn possesses four key abilities that are necessary to become a potent EV maker - abilities to perform overseas production, supply chain management, large-scale production, and system-level solutions, according to DIGITIMES Research's study.
Foxconn's efforts toward electric vehicle (EV) manufacturing have been generating solid results. From an external perspective, the EV ecosystem can be developed toward a flattened supply chain as EVs do not need complex engines that require long-time developed technologies to make.
Moreover, EVs' body structures are increasingly designed and manufactured by the concept of platforms and modules, making the production model of mobile phones applicable to EV manufacturing, the study shows.
EVs see higher outsourcing opportunities as they do not need complex engines, which enables a more open supply chain. Furthermore, with simpler body structures, EV manufacturing has a lower technological barrier.
However, the manufacturers still need to have the ability to run overseas production, manage the supply chain, produce in volume and provide system-level solutions. As such, the number of manufacturers capable of making EVs is quite limited with Foxconn being one of the few.
Foxconn has a proven track record in implementing the build-operate-localize (BOL) model for its overseas operations. It can also apply its experience with mobile phone supply chain management in the automotive sector and is seeing its EV capacity ready to reach the one-million-unit mark by 2024. It is working with the Mobility in Harmony (MIH) Consortium to build standardized platforms for the EV industry ecosystem.
Foxconn's EV customers will mainly be EV startups as they lack sufficient funding to build in-house production capacity and have no supply chain management experience and ability. Outsourcing their EV manufacturing will accelerate their time-to-market. Traditional automakers also have outsourcing needs for their niche cars.