Electronics giants enter the electric car racetrack

The automotive industry is undergoing a transformation as technology companies like Foxconn from Taiwan and Huawei from China expand their influence on the electric vehicle ("EV") market. This is prompting established automakers like Nissan and Honda in Japan to pool their resources to withstand the growing number of ambitious new competitors. Foxconn, also known as Hon Hai Precision Industry, is steadily expanding its capacities in the automotive supply chain. At the Consumer Electronics Show in Las Vegas, Foxconn's joint venture with Yulon Motor, Foxtron, showcased its new EV hatchback, the Model B, along with other automotive electronic solutions. Meanwhile, Honda and Nissan have announced plans for a possible merger, possibly due to Foxconn's interest in Nissan, as this manufacturer was an early adopter of the EV trend with the Leaf. The technology giant Foxconn is planning ambitious moves with the goal of producing four out of every ten electric vehicles sold worldwide in the future. The company has invested almost 1.3 billion dollars in auto-related acquisitions over the past years. Additionally, there is a 50 percent stake in a joint venture with Stellantis for the development and marketing of automotive semiconductors, as well as a collaboration with ZF Friedrichshafen for the production of chassis for passenger cars. Companies like Huawei, Xiaomi, and Sony are also pushing into the lucrative EV market, leveraging their exceptional expertise in electronics and communication to capitalize on the increasing integration of vehicles with other technologies. While Huawei aims to target luxury brands with several partners, Sony, together with Honda, plans to launch the EV Afeela. The emerging challenges from new market entrants and the strong competition from established companies like Tesla and BYD are troubling Nissan. Despite internal challenges, Nissan remains resilient in the competition, although growth has slowed due to issues of price efficiency and convenience for buyers. Foxconn, on the other hand, remains unfazed and lists six different EV models on its website. This new era in the automotive industry promises not only innovative technologies but also exciting dynamics through the fusion of electronics and automotive expertise.