Foxconn Partners with Tencent in Electric Car Business

Taiwan's Hon Hai Precision Industry Co Ltd, better known as Foxconn, on Monday said it has partnered Chinese social networker Tencent Holdings Ltd to develop opportunities related to electric vehicles, marking the latest tech foray into "smart" cars.

Foxconn, WeChat operator Tencent and luxury car dealer China Harmony Auto Holding Ltd signed an agreement to work together in the Chinese city of Zhengzhou, Henan province, the contract manufacturer said without detailing specifics.

The partnership would put Tencent on a par with online peers Alibaba Group Holding Ltd and Baidu Inc, which have already moved into the nascent market for Internet-connected cars vie tie-ups with major auto makers.

Foxconn said the coalition would form a working team drawing on its manufacturing capabilities, Tencent's Internet platform and China Harmony Auto's dealership network, to explore commercial possibilities in smart electric vehicles.

Foxconn announced an investment of over $800M to build electric cars in China in 2014.

Foxconn, known more for assembling the bulk of Apple Inc's iPhones, already has experience with electric vehicles having manufactured the touch screens in some cars made by U.S. automaker Tesla Motors Inc.

The absence of a carmaker from its new partnership appears to put the group on a different tack to that of Alibaba or Baidu in targeting electric vehicles.

The Chinese government has recently redoubled efforts to promote electric vehicles, renewing tax breaks and setting aggressive emission standards.

Foxconn has manufacturing operations across China and has been working to diversify from the competitive, low-margin contract business. As part of that drive, it bought around 10 percent of Zhengzhou-based China Harmony Auto last year.

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Foxconn invest $800M to build electric cars in China

Foxconn Technology Group, the maker of Apple’s iPhone, is investing at least 5 billion yuan (US$811 million) to develop electric car manufacturing in a Chinese province.

The Taiwanese company is making the investment in China’s Shanxi province, it said on Wednesday. Foxconn already has two factories in the province. One of these assembles smartphones while the other is devoted to producing robots and automation equipment, it added.

Foxconn has largely focused on electronics manufacturing for clients including Microsoft, Sony and Amazon.com. But the company is branching out into new business sectors, as a way to grow its revenue streams. Analysts estimate that it makes as much as half of its revenue from assembling Apple products.

In June, Foxconn’s CEO Terry Gou said that the company is targeting to build electric cars with a price of less than $15,000.

Foxconn has already been developing electric car batteries for some time, and the company has many customers for them, he added. It also manufactures the touchscreen panels found inside the electric cars from Tesla Motors.

Foxconn Technology Group and BAIC Motor Corporation recently agreed to jointly establish a company that provides electric vehicle rental services, set to become operational in September. BAIC launched the E150 EV in China earlier this year.

The BAIC E150 EV is powered by an 60 hp and 144nm electric motor powered by a 25.6kwh lithium-ion battery. Top speed is 125km/h, range is 150km. Price range from $20.300 to 22.000.

China is mandating that electric cars make up at least 30 percent of government vehicle purchases by 2016, the latest measure to fight pollution and cut energy use after previously exempting EVs from a purchase tax.

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