Foxconn Adopts CDMS Model to Accelerate Electric Vehicle Market Entry in Japan

Foxconn is actively pursuing entry into the Japanese electric vehicle market by showcasing its Japan-specific Model A electric vehicle at the Japan-Taiwan Image Exhibition. The company is employing its Contract Design and Manufacturing Service (CDMS) model, which focuses on product development, faster market entry, and cost reduction.

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Foxconn is not trying to establish its own brand, but through the CDMS (Contract Design and Manufacturing Service) model, it achieves three core spirits: product development (Time to Technology), faster market entry (Time to Market), and lower costs (Time to Cost).

The Model A, designed for the Japanese market, features a pillarless design for easy passenger and cargo access, along with intelligent functions like AI translation. Japanese clients, including taxi operators, have shown significant interest. Foxconn is also collaborating with Mitsubishi Motors on the Model B electric vehicle, slated for launch in the Australia-New Zealand market in the latter half of the year. The company plans to prioritize introducing its Model T electric bus to Japan before expanding further overseas.

Foxconn emphasizes that its CDMS approach allows for rapid vehicle development, reducing the typical 55-month timeline for traditional automakers to around 24 months. This speed is crucial in the rapidly evolving EV market. While Japan is a traditional automotive powerhouse, Foxconn believes its strengths in electronics manufacturing, a key component in EVs, give it a competitive edge. The company has also bolstered its capabilities in areas like chassis technology through acquisitions.

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In the era of internal combustion engines, Taiwan might not have had an advantage, but in the electric vehicle era, more than half of the components are electronic. Foxconn's long-accumulated electronic manufacturing capabilities can be leveraged.

Furthermore, Foxconn sees opportunities for localization in the EV sector, aligning with global trends where countries aim to foster domestic supply chains through new energy vehicle policies. The company is collaborating with Poland's state-owned EV brand EMP to expand into other markets via the CDMS model. Foxconn views global automotive brands, including those from China, as potential clients rather than competitors, aiming to build its own complete vehicle development capacity.

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In the past, traditional car manufacturers took about 55 months to develop a car, but Hon Hai Advanced can shorten it to 24 months. The electric vehicle market is all about speed.