A Byton M-Byte electric SUV (SUV) will be on display at the CES 2020 event in Las Vegas, Nevada, USA, on Sunday, January 5, 2020.
Bridget Bennett | Bloomberg | Getty Images
GUANGZHOU, China – Apple iPhone maker Foxconn has signed a deal with Chinese electric car maker Byton to help produce its first car.
The move marks a major boost from Foxconn in automotive manufacturing, as it seeks to diversify its business and go beyond just assembling consumer electrical products.
Foxconn, which trades in Hon Hai Precision Industry Co. in Taiwan, its stocks rose more than 4% on Tuesday after closing more than 8% higher on Monday.
Byton, Foxconn and Nanjing Development Zone signed a strategic partnership framework agreement on Monday to jointly produce Byton’s M-Byte SUV by the first quarter of 2022.
According to a statement from the companies, Foxconn will provide its expertise in advanced manufacturing technology and operational management experience and share industrial resources.
The agreement could serve as a lifeline for Byton, who first unveiled the M-Byte in 2018 but has struggled to ramp up production ever since. The Nanjing, China-based company had to suspend production in July and undergo a reorganization after the coronavirus pandemic hurt the company.
For Foxconn, the deal is a way to diversify its business. Last year, Foxconn launched a set of tools that could allow a company to design large parts of an electric car to be manufactured by the Taiwanese company. These tools include both a chassis and software for the vehicle.
Foxconn has already provided car manufacturers, including Tesla, with specific components.
The Chinese electric vehicle market continues to grow strongly. Electric car start-ups Nio, Li Auto and Xpeng have each announced in recent days that deliveries have risen sharply in 2020 to close the year with new monthly highs.