Hon Hai Promises $15,000 Electric Vehicle

JUL 13 2014 BY MARK KANE 15



Hon Hai Precision Industry Co., which is known as being the assembler of Apple Inc.’s iPhones and iPads, announced last month that is planning to introduce electric cars, which will be priced under $15,000.

The Taiwanese company however didn’t release any details on the vehicle,  nor did it say how it will lower the price so significantly compared to current models.

Terry Gou (郭台銘), chairman of the world’s largest contract electronics maker, Hon Hai, stated:

“The electric cars made by us will be very affordable,”

“The development of new-energy vehicles is just beginning. When integrated with cloud computing, the Internet, smart traffic and smart cities in the future, people will be able to drive more easily and reduce car accidents more efficiently.”

Maybe this will be just a tiny electric vehicle.

What we know is just that the plans are bold:

“This kind of technology is due in the next 10 to 20 years, and our company will make huge investments in it.”

Source: The China Post

Categories: General


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15 Comments on "Hon Hai Promises $15,000 Electric Vehicle"

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already know its going to be ugly

It will be an ugly city car but put together better than any of the micro start-ups attempting something similar.

are there any really good looking $15k cars?

Thanks Mark, now Jay has to add a Hon Hai tab to the site….

…I don’t foresee that happening too soon, (=

Considering, the most popular vehicle, in Taiwan, the adult bicycle, and the products the company produces; the “Electric Vehicle” is likely to be, a bicycle, with a 4 inch touch screen, to control functions.

I thought it was a scooter?

I don’t know if I would put down the idea of a cheap EV so fast. The price for the battery on a leaf is, by their own admission, $5000. Not using a gas engine and not having emission controls and safety controls (the firewall becomes an “impact wall” means that the cost of the other components is low, or will be low.

I look at Nissan and they sell a lot of cheap cars, Versas for $12000, Sentras for $16000, Altimas for $22000, etc.

A versa + $5000 equals $17000, not $25000 or more. Nissan is looking at adding range as a higher price option to the Leaf, and looking at an Infinity EV. To me this means they think they have the low side of EVs covered and want some of Tesla.

In the long run, the simplicity of an EV and falling battery costs are going to start making an EV cheaper to buy and own than a gas car. In the meantime, there is going to be a lot of incentive to keep prices high until all the greenies have paid a premium.

It’s not out of the question in that a gas car has tons and tons of moving parts compared to a EV.

Here is a hour long video by Mitsubishi showing the story of the i-miev:

The video was made in 2012 or 2010. In the video they mentioned that 40% of the i-miev’s costs are it’s battery pack. When the video came out the i-miev was a $32,000 car before the tax credit. If battery costs fell by 10% to 20% during that time and 2014. And Mitsubishi wanted to raise demand by cutting prices. Doing a price cut would help them then hurt them.

%40 of $32,000 is $12,800. That means that either they were paying way too much, or that Nissan is giving away their batteries at $5000, or that battery prices have fallen more than 1/2 in 2 years.

it will be made of iphone parts and vibrating motors

Yes electric cars should be cheaper than gas cars. Yes the batteries should be the most expensive part of an EV. The motor should be the cheapest of drive train parts. Gas engines should be about 1500.00 more than a EV motor. Internet info on most changes of gas to electric is around 7K to 10K including batteries. That is why I will not buy an existing EV. All EVs should be 10k or more less than the price of the Volt.

There is a well known principle I’ll call the “plateau” principle. When introducing a very new technology that sells well for the first time, even if the volume in making the product allows the cost to make to fall, you keep the sale prices high. What you are doing is getting the “early adopters” to pony up their cash, enter the “cash cow” phase of a new product, and pay off your development costs. Its all fair, and I agree with it.

However, all product move on. The economics fundamentally favor EVs. Calculators, computers, LED and compact Florescent lights all rode this cost curve down, and I would argue that EVs have more in common with electronic industry products than they have with traditional automobiles.

The point of this rant is that when EVs are fundamentally cheaper to make than gas cars, you will see the entire car market suddenly (and I would argue quite dramatically) turn completely upside down.

And I believe it will.

So to finish the analysis a bit: I have said several times here that I think EVs will represent %25 of new car sales or more by the year 2025, or in about 10 years. Of course everyone thinks I am crazy. However, all that involves is applying the same kind of production curve to EVs that the electronics industry applies to its own wares. That’s an important point. The auto industry does not have price curves like that. We do. They have more than 100 years of making that product, and believe they will never see a change. We in the industry believe they are wrong. Now look at AT&T, the lighting industry, and next, the power companies. All with 100 years of track record, phones, light bulbs, power generation. We wiped out the phone company in 1/10 of the time it took to make it. They are believers. In lighting, we have wiped out most of the oldest technology, but there was nobody left to feel the effect. Lighting left the USA long ago and became a backwater industrial concern. The power companies, like the car companies, are still deep in denial or believe they will survive the… Read more »

Once the overall cost of a decent battery pack, controller and motor fall to around £5000, i’ll be making my own single seater with a carbon fibre safety cell for myself for the road. I reckon I should be able to get the weight down to less than 300kgs plus the batteries.
I still haven’t ruled out an electric trike, using the Morgan 3-wheeler layout