Feb, 2021 - By WMR
Foxconn, Byton, and Nanjing Development have signed a collaborative agreement to produce the first Foxconn vehicle.
Foxconn is trying to expand its businesses beyond assembly of electric products. This deal marks the beginning of Foxconn's journey in the auto manufacturing industry. Foxconn is traded by the name Hon Hai Precision Industry Co., which is based in Taiwan. The shares of the company increased by 4% on 5th January 2021 after closing at over 8% higher on 4th January 2021.
Byton, Nanjing Development, and Foxconn signed an agreement based on the terms of a strategic cooperation on 4th January 2021. The agreement focuses on joint production of Byton’s M-Byte SUV by the first quarter of 2022.
Foxconn has stated that in this deal, it is looking forward to sharing its expertise in technologies related to advance manufacturing processes, as well as its experience in operational management and industrial resources. This agreement has served as a lifeline for Byton, who first revealed the M-Byte in 2018, but since then has struggled to boost the production. The China-based company, Nanjing Development, had to suspend the production of oil and gas equipment in July as a result of the coronavirus pandemic. For Foxconn, the agreement is a doorway to expanding its businesses in other sectors. In 2020, Foxconn revealed a toolset that will enable companies to design large parts of electric vehicles produced by Foxconn. The toolset also include a software for the vehicle and a chassis.
Foxconn is already supplying specific components to car manufacturers like Tesla. The electric vehicle market in China is estimated to witness steady growth due to the presence of auto manufacturing industries in the country. E-vehicle startups such as Xpeng, Li-Auto, and Nio, have all announced that their deliveries have increased in 2020 and have closed the year at new monthly highs.