Foxconn Thailand EV Factory to Produce 50,000 Units in 2023

Foxconn and PTT PLC to Establish EV Manufacturing in Thailand

A collaborative agreement is progressing between Foxconn, the prominent smartphone manufacturer headquartered in Taiwan, and PTT PLC, Thailand’s national oil and gas provider. This partnership will facilitate the creation of an electric vehicle (EV) manufacturing plant within Thailand.

Vehicle production at the new facility is anticipated to commence in 2023. Previously, Foxconn announced intentions to initiate factory construction in both Thailand and the United States during the coming year.

Joint Venture Details and Production Capacity

In June, Foxconn and PTT formalized their commitment to EV production through a signed memorandum of understanding. PTT will hold a 60% ownership stake in the joint venture, while Foxconn will control the remaining 40%.

The initial manufacturing capacity is projected to be approximately 50,000 vehicles annually. Foxconn forecasts a tripling of this output by the year 2030.

This Thai plant signifies Foxconn’s formal entry into the automotive industry as a vehicle manufacturer. Simultaneously, the company is collaborating with EV developer Fisker on a U.S.-based manufacturing facility, also slated to begin production in 2023.

The collaboration with Fisker is formalized under an agreement known as Project PEAR, which was established in May.

Strategic Advantages of Thailand

According to Bakar Sadik Agwan, a senior automotive analyst at GlobalData, “Thailand is relatively new concerning the supply and demand dynamics of EVs, with a limited number of domestic manufacturers.”

Agwan further stated that Thailand’s favorable policies and established automotive manufacturing base present significant advantages for Foxconn compared to alternative markets.

Foxconn previously had a manufacturing partnership with Byton in China, but this collaboration is currently reported as being suspended. While China represents the largest EV market, it is experiencing overcapacity challenges due to market fragmentation, potentially impacting profitability for numerous automakers.

Government Support and Future Goals

Thailand’s government is actively supporting Foxconn’s venture, aiming to establish the nation as a future EV hub.

The government’s objective is to increase the proportion of EVs in the country’s total vehicle capacity to 30% by 2030, achieved through incentives for local production.

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