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Details of the agreement between Foxconn Technology and Byton on the Electric Vehicle Market

Foxconn Technology, often referred to as Hon Hai, plans to join the electric car venture. This comes after the iPhone assembler signed a contract with Byton. The Chinese electric vehicle business and the Apple supplier will work with the Nanjing Economic and Technological Development Zone’s assistance. As of the first quarter of 2022, their target is to begin Byton M-Byte’s mass production. According to a reliable source, Foxconn Technology plans to invest up to $200 million.

The collaboration could be the light at the end of the tunnel for Byton. After all, despite revealing the M-byte car idea, it is yet to produce it several years down the line. Additionally, 2020 was bad for the Chinese company to the extent that all its domestic operations came to a standstill. The corona global pandemic was quite harsh to Byton to the extent that staff had to go for an unpaid leave around July. However, it is important to note that the situation was already bad way before the pandemic. Nevertheless, corona may have made a bad situation worse than before.

Foxconn Technology brings several things on the table. They include supply chain resources, its expertise in operation management and its advanced manufacturing technology. Rumours have it that Byton is not the only company that Foxconn Technology is wooing to collaborate in electric car manufacturing. On the contrary, it is also having the same conversation with other automakers in China.

Investments by tech companies in the likes of car-to-car communication systems, autonomous driving and electric vehicles is not a new thing. However, Foxconn plans to go the extra mile and develop its own self-driving car. Its largest contributor of revenue, precisely half of it, is Apple. The venture into the auto industry would see it have another source of revenue.

At the beginning of 2010, Foxconn had had similar plans. It wanted to collaborate with the Chinese Fiat Chrysler Automobiles. The joint venture would revolve around developing and making electric vehicles. However, Hon Hai wouldn’t be part of the assembling process. Later in the year, it had already designed an electric vehicle chassis. Equally important, it developed an open software platform designed to help EVs automakers develop models quickly and effortlessly. As for the software platform, the shipping will begin in April if things go as planned. As of now, Hon Hai is already supplying parts to various giant carmakers, and Tesla is a good example of its customers.

What’s next for the M-Byte SUV remains a mystery, but the future seems to be bright following the collaboration. If such a great idea was to see the light of the day, it could change the electric vehicle industry no doubt. After all, its range of 550 km and the capability of charging up to 80% within 35 minutes is impressive.

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