Luxshare recently became a key supplier to Apple. The Chinese company, which assembles AirPods and more recently iPhones, today announced its joint venture with The Chery Group. Chery is an electric vehicle manufacturer based in China.
Together, Luxshare and The Chery Group plan to develop and manufacture electric vehicles. This company will start in the next three months with a capitalization of about 1.7 billion yuan (267 million dollars). This also includes the construction of a new factory.
Luxshare has taken a 30% stake in the new company and the rest will be held by the Chery Group’s electric vehicle (EV) unit, Chery New Energy. According to Chairman Wang Laichun, Luxshare will not become an automaker but rather work with Chery to nurture the construction of electric vehicles. Luxshare aims to become a leading Tier 1 supplier, and its new electric vehicles will not carry the Luxshare brand.
According to an article on Nikkei Asia, electric vehicles are currently priced at around 100,000 yuan ($15,700) and have seen sales increase by 30% over the past year. Chery Group exports total nearly 270,000.
The news of this partnership comes after another Apple supplier, Foxconn, signed a partnership agreement with the Indian company Vedanta.
The global chip shortage has recently been one of the main reasons vendors are looking to find new areas of business. This new venture will help Luxshare establish itself in the automotive industry as the company continues to diversify and grow as a supplier.
Besides these challenges, rumors continue to speculate that an “Apple Car” is in development. The car is expected to be an autonomous electric vehicle with launch in the next few years. Learn more about the Apple car here.
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