Foxconn’s vehicle design subsidiary is set to acquire full control of Taiwanese car marque Luxgen, reported Nikkei Asia.
The move will give the contract electronics giant an in-house brand as it expands further into electric vehicles in its domestic market.
Foxtron Vehicle Technologies, a joint venture created by Foxconn and automaker Yulon in 2020, has agreed to buy 100% of the Luxgen brand for T$787m ($24.9m).
Foxtron has until now been responsible mainly for research, development and design of electric vehicles.
Once the transaction is completed, Foxtron will gain control of Luxgen’s operations, including its workforce, sales and dealer network, marketing assets, and island-wide after-sales and servicing facilities.
Foxconn, based in Taiwan, is best known as the world’s largest contract electronics manufacturer and is also a supplier of AI servers.
The EV business is one of the key growth areas identified by chairman Young Liu since he took over from founder Terry Gou in 2019.
Liu pushed for the establishment of Foxtron, chaired the unit and oversaw its listing on the Taiwan Stock Exchange in 2023.
He stepped down as chair at the end of September, with CEO Andy Lee taking over the role.
Foxtron has recently registered “Foxtron” as a trademark in Taiwan, together with model names such as Bria, Cavera, Enizio and Divino for various EV types, a step that prepares the ground for selling its own models in the local market.
The decision to own a consumer-facing brand raises questions about whether Foxconn is shifting away from its previously stated strategy of concentrating on contract design and manufacturing services (CDMS) for other carmakers.
Liu has repeatedly emphasised that this model would underpin the company’s EV expansion.
A senior person familiar with Foxconn’s internal discussions said the Luxgen move is intended to be focused on Taiwan for now and should not undermine the core CDMS approach.
“Foxconn and Foxtron have talked to overseas customers. Foxtron’s move to acquire Luxgen will focus on the domestic market as of now, which we don’t think will contradict Foxconn’s CDMS strategy,” the person was quoted by the publication as saying.
Drawing a parallel with the technology sector, the source added: “Just like Google introducing Pixel phones and Microsoft introducing the Surface series, it would provide an opportunity for Foxtron to show its clients and potential clients what the optimisation of its designs and integration of software and hardware can achieve in a car.”
Foxtron revealed the design of the n7 electric passenger vehicle in 2023, and the model entered the Taiwanese market in 2024 under the Luxgen badge.
