Forbes: Cooperation with Foxconn in the electric vehicle sector, what benefits can VinFast benefit?

Recently, the media reported that Foxconn, the world’s largest consumer electronics contract assembler, has begun discussions with Vingroup, the largest corporation in Vietnam, about working together in the vehicle sector. electricity.

A Vingroup spokesperson confirmed that the company has ” received the proposal ” from Foxconn but said ” nothing specific ” and that any collaborations if any will also focus on electric vehicle battery development. and other parts. There has been no decision yet on co-production of electric cars.

” Foxconn sees electric vehicles as a promising new growth engine for the company. They have developed a technology platform for other companies to institutionalize, ” said Chris Robinson, senior analyst at Lux Research . create cars based on that “.

” Using the existing platform will help VinFast reach the market faster, spend less time and money designing the powertrain, ” says Chris.

An agreement, if any, would help each of the companies become more competitive in this fast-growing sector.

The global electric vehicle market stands at around $ 140 billion in 2019 and will reach $ 700 billion by 2026, Facts & Factors said in a report.

Both companies are working on electric vehicle development. Foxconn signed a memorandum of understanding last month with startup EV Fisker Inc. is headquartered in Los Angeles to sell 250,000 vehicles in China, Europe, India and North America. Foxconn has previously agreed to make electric cars with Fiat Chrysler and Geely, as well as other automakers. The company will be able to use existing assembly technology to compete.

Foxconn has set a target of capturing 10% of the global electric vehicle market between 2025 and 2027. Foxconn did not respond to a request for comment.

In January, a Vingroup representative said that VinFast will introduce its own self-driving, electric sport utility vehicle this year with the same features as Tesla at a lower price. Vingroup launched the electric motorcycle line 2 years ago in the Vietnamese market.

Foxconn and Vingroup have also cooperated before. The two companies partnered with New York-based ventilator developer Medtronic to develop a ventilator for patients Covid-19.