Luxshare has become a key supplier of Apple as of late. The Chinese company, which assembles AirPods and most recently iPhones, announced today its joint venture with The Chery Group. Chery is an electric vehicle maker based in China.
Together, Luxshare and The Chery Group are planning to develop and manufacture electric vehicles. This venture will start within the next three months with a capitalization of about 1.7 billion yuan ($267 million). This also includes the construction of a new plant.
Luxshare has taken a 30% stake in the new company and the rest will be owned by The Chery Group’s electric-vehicle (EV) unit, Chery New Energy. According to chairwoman Wang Laichun, Luxshare will not become a carmaker but will instead work with Chery to service the building of electric vehicles. Luxshare is aiming to become a leading Tier 1 supplier, and its new EVs will not sport the Luxshare brand name.
According to an article on Nikkei Asia, the EVs are currently sold at about 100,000 yuan ($15,700) and have seen a 30% increase in sales last year. The Chery Group’s exports total nearly 270,000.
The news of this partnership comes after another Apple supplier, Foxconn, has signed a partnership deal with Indian company Vedanta.
The global chip shortage has recently been one of the biggest reasons suppliers are seeking to find new areas to do business. This new venture will help Luxshare establish itself within the automotive industry as the company continues to diversify and grow as a supplier.
Aside from these challenges, rumors continue to speculate that an “Apple Car” is in development. The car is expected to be a self-driving electric vehicle with a launch sometime within the next few years. Check out more on the Apple Car here.
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