iPhone Supplier Foxconn to Invest $250 Million for EV Components Unit in Vietnam

Foxconn is set to invest about $250 million (nearly Rs. 20,500 crore) in two new projects in Vietnam, including for the production of components for electric vehicles (EVs), the world’s largest contract electronics assembler and local authorities said on Friday.

The move confirms Foxconn’s global plans to become a player in the EV industry, after having focused for years on assembling electronic products for Apple and other major brands.

The Taiwanese giant, through its unit Foxconn Singapore, is set to invest approximately $250 million in an industrial park in northern Vietnam, “focusing on the production of electric vehicle components, controllers and other products to meet future development needs,” it said in a statement to Reuters.

The new projects would take its total investment in the southeast Asian manufacturing hub to about $3 billion (nearly Rs. 24,600 crore) in nearly two decades since it built its first plant there, confirming its wider plans to expand outside of China amid continuous tensions between Beijing and Washington.

Local authorities confirmed they had authorised Foxconn’s new investment. The largest chunk of the new funding, about $200 million, will go into a factory to produce EV chargers and components, which is scheduled to start production from January 2025 with a workforce of 1,200 people, authorities said.

The remaining $46 million (nearly Rs. 375 crore) is for a plant to produce electronics and telecommunication components, with production set to begin in October 2024.

Both facilities will in the province’s Song Khoai Industrial Park, 138 km (86 miles) east of Hanoi.

“With roots that go back more than 15 years, Foxconn’s base in Vietnam is one of the key locations in our global footprint,” the company said in the statement to Reuters.

Foxconn also plans to set up a new factory in Vietnam’s central province of Nghe An with an initial investment of $100 million (nearly Rs. 820 crore), the provincial local authority said last month.

© Thomson Reuters 2023


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Ola Begins Construction Work of 100GWh Gigafactory in Tamil Nadu

Electric vehicle company Ola on Wednesday said it has commenced construction of its 100GWh gigafactory at its manufacturing facility in Tamil Nadu. 

The company has installed the first pillar of its cell factory in Krishnagiri, Tamil Nadu today.

A gigafactory is a facility where equipment and components related to electrification and decarbonisation technologies are manufactured.

In February, Ola signed a memorandum of understanding with the Tamil Nadu government committing investments of Rs. 7,614 crore for manufacturing electric cars, two wheelers and lithium cell gigafactories in the state.

Spread across 115 acre, the Ola Gigafactory is expected to commence operations by early next year with an initial capacity of 5GWh (Giga Watt hours). It would be scaled up to 100GWh in phases, a company statement said.

On commencement of operations at full capacity, it is claimed that the factory would be one of the world’s largest cell manufacturing facilities.

“This is a proud moment for us as we installed the first pillar of our gigafactory today. Our gigafactory will be a major milestone in India’s electrification journey, bringing us closer to making India a global EV hub,” said company founder and CEO Bhavish Aggarwal.

Ola has also invested in cell and battery research and development and has set up one of the advanced cell R&D facilities in Bengaluru.

As per the MoU signed with state government, the company would set up an electric behicle Hub which would house advanced cell and electric vehicle manufacturing facilities, vendor and supplier parks and the larger ancillary ecosystem for electric vehicles, at a single location.


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Tesla Close to Achieving Fully Autonomous Vehicles, Says CEO Elon Musk

Tesla is close to achieving fully autonomous vehicles, CEO Elon Musk said during a visit to Paris on Friday, adding autonomy was the “main driver” of the brand’s market value.

The company’s shares rose by as much as 3 percent to their highest level in more than eight months.

The world’s most valuable automaker, Tesla has a market capitalisation of around $800 billion (nearly Rs. 65,55,000 crore), but for years has missed Musk’s targets to achieve full self-driving capability.

“Although I’ve said this before, I think we will solve autonomy soon,” the billionaire told the VivaTech conference.

“The value of the company is primarily on the basis of autonomy,” Musk told the Paris event. “That’s really, I think, the main driver of our value.”

The electric car manufacturer says that what it calls “Full Self-Driving” software does not make its vehicle autonomous and requires driver supervision.

Earlier on Friday, Musk met French President Emmanuel Macron for the second time in just over a month. French officials are hoping to convince Musk to pick France for the construction of his next Tesla gigafactory in Europe.

He also had lunch with Bernard Arnault, the head of luxury goods giant LVMH, and two of his sons, Antoine and Alexandre, according to a source familiar with the matter.

Arnault and Musk have taken turns to be the world’s richest person, with Musk snatching the lead in recent weeks after a sell-off in luxury and a rally in Tesla stocks.

© Thomson Reuters 2023


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EV Charger Makers Guardedly Look to Adopt Tesla Standard

Electric vehicle charging companies are cautiously embracing Tesla‘s charging technology as the main US standard, mere days after Ford and GM said they were adopting it, but questions remained about how any interoperability would work.

The rare agreements between Tesla and each of the two US automakers, who among them control more than 60 percent of the country’s EV market, is likely to give top billing to Tesla’s North American Charging Standard (NACS).

That puts companies, including ChargePoint, EVgo and Blink Charging, in danger of losing out on customers if they offer only Combined Charging System (CCS), the rival standard that the Biden administration has favoured.

The White House said on Friday that EV charging stations that offer Tesla plugs would be eligible for billions of dollars in federal subsidies as long as they included CCS connectivity. The White House aims to spur deployment of hundreds of thousands of chargers, which it sees as integral to EV adoption.

Charger maker ABB E-mobility North America, a unit of Swiss industrial firm ABB, said it has been working on NACS development since Tesla opened up its technology in November.

“We are seeing tremendous interest in beginning to integrate the NACS connector into our chargers and our units … customers are saying, ‘when can I get one?'”, said Asaf Nagler, vice president of external affairs at the unit. The company is still in the design and testing phase, and has been working with Tesla, he said.

“The last thing we want is to rush a solution to the market that is not seamless,” said Nagler, adding, “we still don’t fully know all the limitations of the (Tesla) charger itself.”

Ashley Horvat, a senior executive at Schneider Electric SE’s unit in the US that supplies EV charging hardware and software, said interest in NACS adoption had been on the rise since the announcement by Ford Motor and General Motors.

Blink Charging said on Monday it would launch a new fast charger with Tesla’s connector, as did ChargePoint Holdings Inc and Tritium DCFC Ltd. EVgo Chief Commercial Officer Jonathan Levy told Reuters the company was working with its suppliers to “serve all EV drivers no matter what fast-charging connector they use”.

Some of these companies’ stocks fell sharply on Friday, but were paring some of those losses on Monday after they said they would adopt NACS.

Still, concerns remain about how smoothly the two standards would talk to each other and whether having both standards in the market raised costs for vendors and customers.

Neither the automakers nor the US government have explained how any interoperability would work or money would change hands.

“We don’t have much visibility on what’s the charging experience going to be like,” said Aatish Patel, co-founder of charger maker XCharge North America.

‘Miles to go’

Charger makers and operators noted several concerns about interoperability: whether Tesla Superchargers can adequately charge higher-voltage vehicles with fast charging and whether the design of its charging cables will suit the ports on some cars.

Tesla’s Superchargers are integrated with its cars and payment is tied to accounts of users, who can charge and pay through a Tesla app seamlessly. It offers adapters that can be used to charge its cars at non-Tesla charging stations and is opening up its Superchargers for use by non-Tesla vehicles.

“If you don’t have a Tesla and you use a Supercharger, it’s not as clean-cut. How much integration do Ford, GM and other automakers really want to give Tesla on their vehicles to allow for this seamless integration? Or are they going to pivot into a less seamless integration to have access to a larger network?” Patel said.

A former Tesla official who worked on Superchargers said NACS chargers would add cost and complexity in the near term, but the government needed to support one standard — NACS — given its higher vehicle population and better user experience.

The person, who now works for a charging company, is not authorized to speak to the media and declined to be named. The company that is developing CCS chargers, is “reviewing” its strategy because of the Tesla-GM deal.

“Tesla’s proposal … is not a standard. It has miles and miles and miles to go before it becomes a standard,” said Oleg Logvinov, president of CharIN North America, an industry body that promotes CCS.

Logvinov, who is also chief executive of EV charging parts supplier IoTecha, said CCS was worth backing because it had worked for more than a decade with multiple vendors.

© Thomson Reuters 2023


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Uber, Ola Suffer a Blow as Supreme Court Revives Ban on Bike Taxis in Delhi

The Supreme Court on Monday stayed the High Court order by which it had essentially allowed bike-taxi aggregators Rapido and Uber to operate in the national capital by asking the Delhi government not to take any coercive action against them till a new policy was formulated.

A vacation bench of Justices Aniruddha Bose and Rajesh Bindal granted liberty to the two aggregators to request urgent hearing of their plea by the Delhi HC.

The bench, which stayed the May 26 order of the High Court, also recorded the Delhi government counsel’s submission the final policy will be notified before July-end.

The top court was hearing two separate petitions by the AAP government challenging the May 26 order of the High Court asking it not to take any coercive action against the bike-taxi aggregators until the final policy was notified.

The top court had in the last week sought a response from the Central government on both the pleas of Delhi government. 

Back in May, the Delhi government approved Motor Vehicle Aggregator Scheme 2023 to regulate cab aggregators and delivery service providers in the national capital. Some of the key highlights of the policy are mandatory panic buttons in taxis, integration with emergency number ‘112’, and phase-wise transition to EVs.

The Motor Vehicle Aggregator Scheme 2023 will be applicable to any individual or entity that operates, on-boards or manages a fleet of motor vehicles through digital or electronic means or any other means to ferry passengers or connect a driver offering to deliver or pick up a product, courier, package or parcel with a seller, e-commerce entity or consignor.


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Tesla Said to Have Proposed to Set Up Unit in India for Domestic Sale, Export

Tesla has proposed setting up a factory in India to build electric cars for domestic sale and export, the carmaker told government officials on Wednesday, according to a source with direct knowledge of the matter.

The proposal comes after India refused to agree to Tesla’s request last year to lower the import tax on cars, which can reach as much as 100 percent. India wanted the carmaker to build vehicles locally but Tesla wanted to test the market first with imports and the talks ended in deadlock.

While Tesla did not discuss lower import taxes with Indian officials, it proposed setting up a new factory, albeit without specifying a location or investment, said the source, who declined to be named as the talks were private.

Making cars locally aligns with Indian Prime Minister Narendra Modi’s pitch to attract companies with his “Make in India” campaign, especially as companies look to diversify their supply chains beyond China.

Senior Tesla executives are in India this week to meet the government to discuss local sourcing of parts and other issues, Reuters reported on Tuesday.

Tesla met officials from Modi’s office and other ministries on Wednesday, said the person and another source familiar with the matter.

Tesla did not respond to Reuters’ request for comment.

The electric carmaker’s renewed interest in India comes nearly a year after it put on hold plans to sell cars in the country after failing to secure lower import taxes, which its CEO Elon Musk said are among the highest in the world.

Tesla had hired a local team and began a search for showroom space, but that was also abandoned last year.

The meeting comes weeks ahead of Modi’s visit to the United States in June.

© Thomson Reuters 2023


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Hyundai Ties Up With Shell to Install Fast EV Chargers at 36 Dealerships Across India

Hyundai Motor India on Wednesday said it has tied up with Shell India to install 60 kW fast chargers across 36 of its dealerships in the country.

The company has signed a memorandum of agreement with Shell India Markets in this regard, the automaker said in a statement.

The strategic partnership aims to increase the expansion of charging infrastructure for battery electric vehicles in the country, it added.

“Such strategic partnerships are fundamental in accelerating the adoption of electric vehicles by customers to achieve the national goal of carbon neutrality,” Hyundai Motor India MD & CEO Unsoo Kim said.

Hyundai currently has an existing network of 72 electric vehicle dealers in 45-cities.

Shell India Director Sanjay Varkey said the strategic partnership with Hyundai aims to improve the charging infrastructure for battery electric vehicles in India by offering easy access and dynamic availability for a safe, reliable, and seamless charging experience.


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(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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Tesla Executives Said to Plan Meeting With Government Officials This Week in Pivot Beyond China

A group of senior Tesla executives plan to visit India this week to meet with federal government officials in a newfound bid to deepen the carmaker’s supply chain in the country as it pushes to diversify beyond China. The executives are scheduled to meet with government representatives including those from the office of Prime Minister Narendra Modi to discuss local sourcing of components for Tesla’s models, people familiar with the matter said, declining to be named as the plans are private.

The visit could represent a thaw in the relationship of India and Tesla, which has yet to enter the country in a meaningful way. Chief Executive Officer Elon Musk has criticized India’s high import taxes and its electric-vehicle policies, and India, in turn, has advised Tesla not to sell cars in the country that have been made in China, its political adversary.

The visitors are set to include C-suite executives and managers from Austin, Texas-based Tesla’s supply chain, production and business development teams. The executives are expected to reiterate Tesla’s request for India to cut import taxes on its vehicles, the people said.

Tesla didn’t immediately respond to an email sent to the press address on its website outside of US office hours. A representative for the ministry of road transport and highways didn’t respond to request for a comment.

Sourcing more from India could help Tesla win Modi’s favour as he tries to make the country a global manufacturing hub. Thus far, Modi’s administration has been lukewarm to Tesla, asking it to avoid selling vehicles assembled at its Shanghai factory. India has been engaged in a long-time border dispute with neighbor China.

While Tesla has found it difficult to break into India, its global rivals such as Mercedes-Benz AG have taken steps to sell locally assembled cars. They’re betting on rising demand for electric vehicles in what is the world’s most populous country and an automobile market with high growth potential.

To be sure, Tesla is still far from considering India as a base for assembling its pricey cars. Musk has said his company won’t set up manufacturing plants in any location where it isn’t allowed to first sell and service its vehicles.

But US companies including Tesla are increasingly realizing the importance of pivoting beyond China as trade tensions between Washington and Beijing show no signs of easing.

Tesla could take a leaf from Apple’s playbook. The iPhone maker has carved out India as alternative manufacturing base and now produces 7 percent of its global smartphone output in the South Asian nation.

© 2023 Bloomberg LP


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With $2.45 Billion Investment in India, Can Hyundai Challenge China’s EV Dominance?

Last week, South Korea’s Hyundai Motor announced that it will invest $2.45 billion (roughly Rs. 20,000 crore) in Tamil Naidu over the next 10 years to bolster its electric vehicle (EV) production in India.

SNE Research which provides global market research and consulting to the rechargeable batteries industry ranked Hyundai as the top sixth EV carmakers by sales in 2022. The Asian carmaker is ramping up its production capabilities as it aims to become one of the world’s top three electric vehicle manufacturers by 2030.

The South Korean car manufacturer whose brands include Hyundai, Kia and Genesis delivered 510,000 EV units last year, an increase of 40.9 per cent from 2021, according to SNE Research. First place went to China’s BYD, which delivered 1.87 million units, followed by Tesla with 1.31 million units. Germany’s Volkswagen and China’s Geely took fourth and fifth places, respectively.

CEO Jaehoon Chang told CNBC, “We are now developing two more platforms and that will enable us to have 18 models by 2030. And we are (aiming) to achieve 2 million EV sales around 2030.”

The carmaker is investing heavily in research and development, building new plants and platforms as well as expanding EV lines and production capacity.

Its EVs are currently developed on an advanced bespoke EV platform, the Hyundai Electric Global Modular Platform (E-GMP). The 2021 Ioniq 5 crossover SUV was the first model in Hyundai’s EV-focused sub-brand Ioniq to be developed on the E-GMP. Hyundai subsequently launched the Ioniq 6 sedan model in 2022. An EV platform scales the production of future models and reduces development and manufacturing costs.

Hyundai plans to introduce vehicles in 2025 based on its two new EV platforms, eM and eS, which are expected to lead to more efficient vehicle development and greater cost reductions.

Away from the limelight, Hyundai has gradually slipped into third place in 2022 in the global race to become the largest global automaker. Based on industry data compiled by CNBC, Hyundai and Kia sold a total of 6.85 million vehicles globally last year, up 2.7 per cent from a year ago. Top dog Toyota sold nearly 10.5 million units while European auto giant, Volkswagen sold about 8.26 million units.

Hyundai reported a 92 per cent year-on-year increase in net profit for the first quarter of 2023, “mainly driven by the US and Europe,” said Chang.

Hyundai reported a net profit of 3.42 trillion won (USD 2.56 billion), up from 1.78 trillion won in the same period a year ago. Revenue grew 24.7 per cent year-on-year, from 30.3 trillion won to 37.78 trillion won.

Hyundai aspires to make an impact in China’s automotive market but the company’s exposure is very limited at the moment.

“We have a joint venture in China. We are now on a deep dive into how we can regain the competitiveness of the China market,” said CEO Chang. China’s EV sales are expected to hit more than 8 million units in 2023, according to Counterpoint Research.

“I think the first step that we’re looking at is how we can optimise the operational capacity in China. And the next step should be our focus on the product portfolio, which should be attractive to local customers with the comparable software functions, as well as hardware and design features,” said Chang in the CNBC interview.

In 2022, China produced almost two-thirds of all global battery EVs and one in four cars sold in China is an EV. In China, more than 94 brands together offer over 300 models selling for just USD 5,000 to over USD 90,000. Local brands command 81 per cent of the EV market, among which BYD, Wuling, Chery, Changan and GAC are a few of the top players.

In a distant second place is Europe followed more closely by North America, accounting for 17 per cent and 11 per cent of global EVs built in 2022, respectively.

For now, it looks like China has taken an insurmountable lead in the race to be the leading EV manufacturer of electric vehicles. However, it’s early days yet with just nine per cent of all light vehicles made last year an EV, there is plenty of room for the other markets to catch up.

Government support has a large part to play in the position China is in today. Between 2009 and 2022, China handed out more than CNY300 billion (USD 43.5 billion) in purchasing subsidies and tax breaks to support locally produced EVs, both domestic and foreign-owned brands. The government also offered large procurement contracts to buy products from budding EV companies, which helped them in their early years and fund further R&D.

In Tamil Nadu’s Chennai, dubbed the Detroit of Asia, Hyundai plans to increase capacity at its factory near Chennai to 850,000 vehicles per year from approximately 775,000. In addition, the automaker’s Indian subsidiary, Hyundai Motor India, will establish a battery pack assembly unit with an annual capacity of 178,000 units and install 100 EV charging stations across the southern state in the next five years.

The investment plan follows the union government’s recent announcement that it will raise taxes on imported vehicles to encourage local manufacturing.

In Singapore, Hyundai earlier this year said that its Singapore assembly plant in Jurong will start rolling out the electric Ioniq 5 by the middle of this year following a delay partly due to the COVID-19 pandemic. It was originally slated to be completed last November.

Andy Kang, Hyundai Motor’s head of sales innovation group said that the plant will initially import the car’s fully painted body shell from its newly opened factory in Indonesia, with all other parts shipped in from South Korea. It plans to gradually source parts locally once production volume ramps up.

Besides the Ioniq 5, the newly unveiled Ioniq 6 and new Kona Electric will be assembled in the Jurong facility too. The plant is slated to produce up to 30,000 vehicles a year by 2025.

“We aim to become the number one EV brand in Singapore,” Kang said. That position is currently held by Tesla.


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Toyota to Release 10 New EV Models by 2026, Aims to Sell 3.5 Million Units by 2030: Report

Koji Sato, the new president and CEO of Toyota Motor, made his first public speech in a live-streamed news conference on Friday afternoon, according to Nikkei Asia. On this occasion, Vice-President Hiroki Nakajima said the company will release 10 new EV models by 2026, which would amount to about 1.5 million vehicles in sales annually.

The president and CEO of Toyota Motor during his speech pledged to pursue electrification “practically,” matching the carmaker’s product offerings to the demands of particular regions.

The world’s top automaker has been performing unimpressively in the fast-evolving industry, most notably lagging in sales of electric vehicles. Nikkei Asia reported that as young rivals like Tesla of the US and BYD of China threaten to conquer the rapidly expanding market, Toyota’s reshuffled management faces the urgent task of ramping up development in the field.

Toyota will also create a specialised unit to develop next-generation EVs, led by one person with “full authority” and in charge of everything from development and production to business, according to Vice President Hiroki Nakajima. The leader of the unit has already been decided and more details will likely be announced in May, he said.

Toyota sold 21,650 battery-powered vehicles in 2022, taking just a 0.3 percent share of the market, according to data by S and P Global Mobility. Nikkei Asia said it is far behind top-seller Tesla’s 1.27 million units and runner-up BYD’s 810,600.

Although it aims to sell 3.5 million by 2030, the past year has been plagued by the recall of its first mass-produced battery-powered model, the bz4X.


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