Foxconn Looking To Manufacture Electric Vehicles In India

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Foxconn is looking to produce electric vehicles in India to diversify its supply chain beyond China. The EV division Foxtron of Taiwanese electronics manufacturer may be interested in setting up an electric vehicle manufacturing center in India apart from Indonesia and Vietnam.

According to unnamed sources, Foxconn has expressed interest in other lines of manufacturing for clients and its own customers. 

Bharat FIH, the subsidiary of the group currently operates two units in Tamil Nadu that manufacture phones for Apple and Chinese brands like Xiaomi, among other brands. Tamil Nadu would like the company to invest more in the state, and the group expressed interest in setting up a manufacturing unit for EVs.

The company purchased a North American manufacturing facility last year to make electric vehicles. It will also produce products for the hybrid electric vehicle brand Fisker. Bharat FI was granted permission by the Securities and Exchange Board of India (SEBI), earlier this month, to raise approximately Rs 5,000 crore via an Initial Public Offering (IPO).

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“While we have historically been able to finance our capital expenditure through equity contributions from the promoter selling shareholder, Wonderful Stars, this may not be the case once we are a publicly-listed company. We will have to finance our future growth from internal accruals and through external debt financing and equity fundraising,” the company said in its draft red herring prospectus (DRHP).

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