Foxconn Signs $2 Billion Electric Vehicle Agreement with Thailand's PTT

[Asia Economy Reporter Yujin Cho] Taiwan's Foxconn has signed an electric vehicle partnership worth up to $2 billion with Thailand's state-owned enterprise PTT, Bloomberg reported on the 31st (local time).

Foxconn and PTT announced in a joint statement that they will establish a joint venture to develop the hardware and software necessary for electric vehicle production. The joint venture will provide an electric vehicle platform for automakers in Thailand and other Southeast Asian countries.

PTT said it plans to invest about $1 billion in the joint venture, with the investment amount potentially increasing to $2 billion in the future.

In this regard, Thai Prime Minister Prayut Chan-o-cha emphasized that electric vehicles are a core part of Thailand's automotive industry policy and stressed the cooperation of the Thai government. Thailand serves as a production hub for global automakers such as Toyota and BMW, and recently introduced measures to reduce taxes and registration fees on electric vehicles as a response to air pollution issues.

Foxconn, which assembles and manufactures Apple iPhones, declared its entry into the electric vehicle market last year as part of business diversification, setting a goal to achieve a 10% share of the global electric vehicle market as early as 2025.

Last month, Foxconn also announced that it will produce electric vehicles in the United States starting in 2023 in partnership with the American startup electric vehicle company Fisker.

This content was produced with the assistance of AI translation services.