Foxconn’s vehicle design subsidiary, Foxtron Vehicle Technologies, is making a significant move in the automotive industry by acquiring full control of the Taiwanese car brand Luxgen. This acquisition, reported by Nikkei Asia, will give Foxconn an in-house brand as it expands its presence in the electric vehicle market in Taiwan.
The joint venture between Foxconn and automaker Yulon, Foxtron, has agreed to purchase 100% of the Luxgen brand for T$787m ($24.9m). This strategic decision comes as Foxconn aims to strengthen its position in the electric vehicle sector, with a focus on research, development, and design.
Once the acquisition is finalized, Foxtron will take over Luxgen’s operations, including its workforce, sales and dealer network, marketing assets, and after-sales and servicing facilities across the island. This move aligns with Foxconn’s vision to establish a strong foothold in the EV market under the leadership of chairman Young Liu.
Liu, who succeeded founder Terry Gou in 2019, has been driving Foxconn’s expansion into electric vehicles. He played a pivotal role in the creation of Foxtron, chaired the unit, and oversaw its listing on the Taiwan Stock Exchange in 2023. Recently, Foxtron has registered the trademark “Foxtron” along with model names like Bria, Cavera, Enizio, and Divino, signaling its intention to introduce its own electric vehicle models in the local market.
While this acquisition raises questions about Foxconn’s shift from its contract design and manufacturing services (CDMS) strategy, Liu has reiterated that owning a consumer-facing brand is essential for the company’s EV expansion. A senior source familiar with Foxconn’s internal discussions emphasized that the Luxgen acquisition will initially focus on the domestic market in Taiwan and should not undermine the core CDMS approach.
Drawing a parallel with the technology sector, the source highlighted the opportunity for Foxtron to showcase the optimization of its designs and integration of software and hardware in cars, similar to Google’s Pixel phones and Microsoft’s Surface series. Foxtron introduced the n7 electric passenger vehicle design in 2023, which entered the Taiwanese market under the Luxgen brand in 2024.
In addition to its domestic EV efforts, Foxconn recently joined a global autonomous driving initiative with Stellantis, Nvidia, and Uber to develop Level 4 self-driving vehicles for robotaxi use worldwide. Foxconn’s expertise in high-performance computing, sensor integration, and electronic control systems will be leveraged in this alliance to support the roll-out of autonomous mobility services.
Overall, Foxconn’s acquisition of Luxgen reflects its commitment to deepening its role in the electric vehicle market. The integration of Luxgen’s brand and operations into Foxtron’s portfolio signifies a strategic move towards establishing a stronger presence in the evolving automotive industry.
