Apple has long been working on its first-ever electric vehicle and while the company kept the project under wraps for quite a long time, it now has the global attention of both technology and automobile firms alike. That is also the reason why speculations are aplenty around the first-ever car that Apple will come up with in the future. A recent one addresses one big question around the endeavour – who will manufacture the vehicle for Apple?
There are, of course, plenty of established automobile conglomerates that can help Apple establish a large and global supply chain for its electric car. However, recent reports indicate that Apple might lean the other way, and trust its existing suppliers for iPhones and other products to manufacture its car in the future. The possibility is backed by the fact that two of its biggest suppliers have now entered the EV business.
Foxconn and Luxshare, two key manufacturers for Apple products, are rumoured to be the top candidates to produce the Apple Car. A new report by DigiTimes Asia highlights how both the firms have entered the electric vehicle market and are poised to have a strong manufacturing capability by the time Apple finishes developing its EV.
Foxconn, for instance, confirmed its plans to build electric vehicles last year. The Taiwan-based equipment manufacturer plans to start developing these EVs in North America by 2023 and is now scouting locations across the US and Mexico for its plant.
Luxshare, the China-based electronic component manufacturer that builds AirPods for Apple, also announced its plans to produce EVs last month. The company has partnered with the Chery Group for this and plans to establish the new EV firm within the next three months. The company’s chairwoman Wang Laichun said in an investor’s note that the firm plans to become a leading Tier 1 supplier of EVs in the world with this new venture.
The other way for Apple
Apple will have some benefits of appointing either Foxconn or Luxshare as the supplier for its electric car. Both the companies have had an established relationship with the company and may be able to continue this partnership as all of them step into the EV world. Luxshare may also help Apple enter the EV space in China, the biggest EV market in the world.
On the other hand, Apple may tie up with established automobile manufacturers for its EV. The report mentions that Hyundai and Magna International are in talks with Apple for this, and since both are much more experienced than Foxconn and Luxshare who are yet to enter the business segment on their own (they have had involvement in the sector but only in specific segments) Apple could expect better results from them.
It remains to be seen how Apple decides the fate of its electric car. Though it is not expected to debut anytime soon. So, we are likely to have a long wait till things are finalised.
Keyword: Apple's electric car plans may see two major suppliers compete in the EV business soon