Hon Hai Takes 10.53-percent of China Harmony to Set up JV to Develop EVs
2015/01/28 | By Quincy LiangHon Hai Precision Ind. Co. Ltd., a major EMS (electronics manufacturing services) provider based in Taiwan, recently announced to invest about NT2.4 billion (US$80 million) in China Harmony Auto Holding Ltd., a Chinese auto distribution group listed in Hong Kong.
Industry insiders say Hon Hai plans to jointly develop electric vehicles (EVs) with China Harmony, with the investment to enable Hon Hai to venture into auto distribution or even after-sales services of Tesla EVs in China.
On December 22, 2014, Hon Hai's subsidiary Foxconn (Far East) participated in a capital increase by China Harmony to take 10.53% stake, becoming the second-largest shareholder in the Chinese luxury-car distributor.
Hon Hai has been trying to branch into the automotive sector in recent years, having in early 2014 reportedly strived to win Tesla's assembly order in Taiwan. In June the company signed an agreement with Beijing Electric Vehicle Company (BJEV), a subsidiary of Beijing Automotive Group of China, to set up a joint venture for EV leasing. In September Hon Hai announced to invest over 5 billion renminbi (RMB) in EV-related projects in Shanxi Province of China. While in November Hon Hai's subsidiary ESON Precision Engineering Co. Ltd., a precision tooling developer and manufacturer, won auto-parts orders from Tesla, and is modifying its factory in Mexico to supply parts to the American premium EV maker.