iPhone maker switches gear to electric cars 

The world's biggest electronics contract manufacturer Foxconn aims to become a major player in the global electric vehicle market

Foxconn — chiefly known for making components for Apple iPhones — is looking to rival Tesla and Volkswagen in the electric car space.

Taiwan's Foxconn has unveiled its first three electric vehicle (EV) prototypes, underscoring ambitious plans to diversify away from its role of building consumer electronics for Apple and other tech firms.

The vehicles — an SUV, a saloon car, and a bus — were made by Foxtron, a venture between Foxconn and Taiwanese car maker Yulon Motor Company.

Foxtron vice chairman Tso Chi-sen said he hoped electric vehicles would be worth a trillion Taiwan dollars to Foxconn in five years time — a figure equivalent to around $35bn (€30bn).

Formally called Hon Hai Precision Industry, the world's biggest electronics contract manufacturer aims to become a major player in the global EV market though it concedes it is a novice in the car industry.

It first mentioned its EV ambitions in November 2019 and has moved relatively quickly, this year announcing deals to build cars with US startup Fisker.

"Hon Hai is ready and no longer the new kid in town," Foxconn chairman Liu Young-way said at an event timed to mark the birthday of the company's billionaire founder Terry Gou, who drove the saloon car onto the stage to the tune of "Happy Birthday".

Italian designer firm on board

The car, which was jointly developed with Italian design firm Pininfarina, will be sold by an unspecified carmaker outside Taiwan in the coming years, while the SUV will be sold under one of Yulon's brands and is scheduled to hit the market in Taiwan in 2023.

The bus, which will carry a Foxtron badge, will start running in several cities in southern Taiwan next year in a partnership with a local transportation service provider.

"So far, Foxconn has made pretty good progress," said Daiwa Capital Markets tech analyst Kylie Huang.

Foxconn has also set itself a target of providing components or services for 10% of the world's electric vehicles by between 2025 and 2027.

This month it bought a factory from US startup Lordstown Motors to make electric cars. In August, it bought a chip plant in Taiwan, aiming to meet future demand for automotive chips.

A successful push by contract assemblers into the car industry has the potential to bring in a slew of new players and undermine the business models of traditional car companies.

Industry watchers are closely watching for clues of which firms might build Apple's electric car. 

While sources have previously said that the tech giant wants to launch a car by 2024, Apple has not disclosed specific plans.

• Reuters