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Apple iPhone maker Foxconn has said it wants to build cars for Tesla

Apple iPhone maker Foxconn has said it wants to build cars for Tesla
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Foxconn Technology Group Chairman Yang Liu speaks in front of a Model C electric car during an event on Tuesday, Oct. 18, 2022, in Taipei, Taiwan. Liu said he hopes one day Foxconn can make cars for Tesla

I-Hwa Cheng | Bloomberg | Getty Images

FoxconnIts largest assembler apple’s iPhones, wants to make cars for a day TeslaThe company’s chief executive officer said, as it further pushes the production of electric vehicles.

Hon Hai Technology Group, Foxconn’s official name, on Tuesday unveiled two electric vehicle prototypes — the Model V pickup truck and the Model B sports crossover hatchback.

But Foxconn doesn’t want to sell its own brand of cars. Instead it wants Design and manufacture vehicles for other automakers. The company claims it can cut a car’s design time in half and cut development costs by a third for an automaker that wants to use its services.

The Taiwanese company has big ambitions. Yong Liu, Foxconn’s CEO and chairman, said on Tuesday that the company is targeting a 5% global market share in electric vehicle production by 2025, adding that he expects Tesla to be a customer.

“I hope one day we can make Tesla cars for Tesla,” Liu said.

Tesla currently builds its own cars at factories around the world — at its US locations and in Berlin and Shanghai.

Elon Musk’s Tesla was not immediately available for comment when contacted by CNBC.

Over the past two years, Foxconn has been developing its electric vehicle business.

Last year the company unveiled three prototype cars. Two of these are currently on the road. The Model T electric bus is part of Taiwan’s public transport system and the Model C is a production vehicle branded as the Luxgen n7 by Taiwanese automaker Yulon Motor.

Liu said he wants Foxconn’s customers to sell “a lot more EVs.”

Foxconn has built its business in consumer electronics manufacturing and assembly over the past few decades. But the company is now trying to diversify into new areas with a core focus on electric vehicles.

The five concept cars show that Foxconn “can design and build EVs that look good and stand for safety,” Liu said.

Part of its current strategy is to demonstrate its capabilities in the electric vehicle space while many companies, especially companies that have not traditionally been in the auto space, are jumping into the market.

In China, for example, smartphone manufacturers xiaomi and internet firms Baiduthere is Electric car company launched with a goal Mass production vehicles.

Foxconn could be an option for companies that want to start electric vehicle entrepreneurship without the need for huge investments in their own design and manufacturing ventures.

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