With only one facility in Tamil Nadu, Foxconn India has transformed from a low-key contract manufacturer to one that is shouting all the right things.
The Taiwanese business, which is best known for being Apple’s biggest contract manufacturer and assembling the iconic iPhone, has big hopes for India.
The corporation, which seeks to expand its supply chain operations outside of China, has been making headlines in India frequently for its big investments and partnerships.
The company has lately announced significant projects in Telangana and Karnataka in addition to doubling down on its investment to expand its current facilities in Tamil Nadu.
Additionally, it has teamed with Vedanta to manufacture chips in India, is foraying into the production of wearables and hearables, and is keeping a close watch on the electric car sector.
Foxconn stated in its most recent annual report that it planned to create a two-wheeled electric vehicle production line in India this year.
India’s sizable consumer market, favourable demographics, and government programmes like “Make in India” have drawn a number of businesses to invest in manufacturing facilities there, according to Deepak Jain, partner at Bain & Co. Future strategic importance of India to these players is likely to depend on sustained infrastructure development, ease of doing business, government incentives, and the capacity to address issues with logistics, supply chain efficiency, and up-skilling and retention of talent pools, the analyst said.
According to Jain, India is anticipated to grow into a sizable EV market by 2030, with a $100 billion+ opportunity across the value chain, thanks to strong domestic demand, a supportive regulatory framework, and manufacturer pushback. This has tremendous potential to develop into an EV manufacturing hub, together with a large talent pool and a well-established automotive manufacturing industry.
When asked for comment regarding its plans for India, Foxconn did not provide any.
Foxconn is aggressive in seeking to increase the size of its presence in India. Its chairman, Young Liu, confirmed that India is a key market for the company during his two visits there in less than a year. Following his second visit in March, Foxconn declared investments in Telangana and Karnataka totaling $500 million (more than 4,000 crore rupees).
An unnamed source told ET that Foxconn was “like this octopus that is spreading its tentacles in India.” “They want to do everything, and they are everywhere. There are always several conversations with Foxconn happening on at once, covering topics like battery switching, consumer electronics, chip production, EVs, wearables, and more.
Regional production is the newest global trend, and Foxconn is following suit. Two years ago, the corporation created the BOL business model with the hope of achieving the “triple-win” scenario of: local nations, local partners, and Hon Hai (Foxconn).
Foxconn is aiming to add two more buildings to its manufacturing location near Chennai, but it has also been dedicated to increasing its production capacity in India.