Remember the EV joint venture between Thailand’s state-owned oil and gas company PTT and major Apple supplier/contract manufacturer Foxconn? The original plan was for the JV firm, Horizon Plus, to make EVs in Thailand starting from 2024, at an initial rate of 50,000 units per year. We’re now at the tail end of the year and there’s no sign of a production car yet.
Turns out that there are headwinds. According to reports from Thailand, PTT plans to reduce its stake in the JV and let Foxconn a.k.a. Hon Hai Precision Industry to take the lead in the venture. The original split is 60% PTT via its Arun Plus subsidiary, and 40% Foxconn.
This is all in a five-year plan that PTT president Kongkrapan Intarajang will present to company directors next month. Aside from the stake reduction, Kongkrapan said that the plan includes halting construction on a US$1 billion EV factory that is part of the project, Nikkei Asia reported.
Allowing Foxconn to take a majority financial share in the project is in line with the Taiwanese firm’s expertise in the industry, the report said, adding that this retreat by PTT is due to intensifying competition in Thailand’s EV market, which has seen an influx of Chinese brands bringing the EV price war in China to the kingdom. This would likely impact PTT’s return on investment in the JV.
Separately, Foxconn chairman Young Liu told investors earlier this month that the company would not reach its original target of a 5% global market share in EVs by next year. Also, Foxconn would not reach the goal of generating NT$1 trillion (RM136.8 billion) in auto-related revenue by 2025. “Our goals remain unchanged, but the 2025 timeframe will be postponed,” Liu said.
Perhaps the two firms, eager to diversify into this hot new segment, were too ambitious back then? Currently, the EV market is flooded by players from China, both legacy carmakers and startups, and there’s more supply than demand in markets across the globe. Check out the just-revealed Foxtron Model D luxury MPV and the Model C and Model E concepts from 2021.
GALLERY: Foxtron Model D
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Thai also had a change in Gomen, looks like they are not so blinded like the previous one on the promise of cheap EV for local production. Bravo to our Thai frens for making the right move! Malaysia bila lagi, jangan tunggu 2 taun lagi. Negara dah nak mampus skarang!