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Taiwanese electronics giant Foxconn is expanding its reach in India, with plans to establish a Battery Energy Storage System (BESS) unit in the country. This strategic move highlights Foxconn's ambition to capitalize on the burgeoning electric vehicle (EV) market in India. The company's chairman, Young Liu, confirmed the plans during a recent visit, emphasizing the company's focus on the EV segment as a core part of their “3+3 future industry” strategy. This strategy prioritizes electric vehicles, digital health, and robotics, with a collective market potential exceeding USD 1.4 trillion and boasting a 20% compound annual growth rate.
Foxconn has already made significant strides in its battery manufacturing endeavors, having established its first plant in Taiwan. The upcoming BESS unit in India will further bolster their presence in the battery storage market. The company's BESS business directly aligns with its EV ambitions, enabling the storage of renewable energy sources like solar and wind power. This strategic focus on energy storage is crucial for facilitating the adoption of EVs, particularly as concerns around range anxiety and charging infrastructure persist.
Foxconn has already invested a substantial USD 10 billion in India, demonstrating their commitment to the Indian market. Liu indicated that further investments are planned in the coming year. This commitment is fueled by the company's belief in India's economic potential and its desire to be a part of its growth trajectory. Notably, during his recent visit, Liu met with various state chief ministers, further solidifying his positive outlook on India's economic prospects.
Foxconn's plans to establish a BESS unit in India, coupled with its ongoing investment, signal a strong commitment to the country's emerging EV market. The company's focus on battery storage technology is poised to play a crucial role in accelerating EV adoption and contributing to India's transition towards a greener and more sustainable future.
Source: Foxconn working on plans to set up battery energy storage system unit in India