Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Hon Hai, Tencent partner in electric car business

Published 03/23/2015, 06:24 AM
Updated 03/23/2015, 06:31 AM
© Reuters. People holding umbrellas walk in front of the headquarters of Hon Hai, which is also known by its trading name Foxconn, in Tucheng, New Taipei city

© Reuters. People holding umbrellas walk in front of the headquarters of Hon Hai, which is also known by its trading name Foxconn, in Tucheng, New Taipei city

TAIPEI (Reuters) - Taiwan's Hon Hai Precision Industry Co Ltd on Monday said it has partnered Chinese social networker Tencent Holdings Ltd to develop opportunities related to electric vehicles, marking the latest tech foray into "smart" cars.

Hon Hai, WeChat operator Tencent and luxury car dealer China Harmony Auto Holding Ltd signed an agreement to work together in the Chinese city of Zhengzhou, Henan province, the contract manufacturer said without detailing specifics.

The partnership would put Tencent on a par with online peers Alibaba (NYSE:BABA) Group Holding Ltd and Baidu Inc (NASDAQ:BIDU), which have already moved into the nascent market for Internet-connected cars vie tie-ups with major auto makers.

Hon Hai said the coalition would form a working team drawing on its manufacturing capabilities, Tencent's Internet platform and China Harmony Auto's dealership network, to explore commercial possibilities in smart electric vehicles.

Hon Hai, known more for assembling the bulk of Apple Inc (NASDAQ:AAPL)'s iPhones, already has experience with electric vehicles having manufactured the touch screens in some cars made by U.S. automaker Tesla Motors Inc (NASDAQ:TSLA).

The absence of a carmaker from its new partnership appears to put the group on a different tack to that of Alibaba or Baidu in targeting electric vehicles.

That market has largely failed to flourish in China, though the government has given it years of subsidies and support. The government has redoubled efforts to promote electric vehicles, renewing tax breaks and setting aggressive emission standards.

Hon Hai has manufacturing operations across China and has been working to diversify from the competitive, low-margin contract business. As part of that drive, it bought around 10 percent of Zhengzhou-based China Harmony Auto last year.

© Reuters. People holding umbrellas walk in front of the headquarters of Hon Hai, which is also known by its trading name Foxconn, in Tucheng, New Taipei city

China Harmony Auto was not available to comment on the latest partnership. Tencent declined to provide immediate comment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.