🚗 Tesla supplier Hota plans to construct its first factory in the US, located in New Mexico.
However, there are concerns that a delay in the petrol ban may negatively impact electric car sales.
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Why is Hota building its first factory in the US?
Why is Hota building its first factory in the US?
Hota Industrial Mfg. Co, a Tesla supplier, is building its first factory in the US in the state of New Mexico.
The decision to build the factory in the US is driven by a greater emphasis on regional production in supply chains and the changing dynamics of globalization due to the COVID-19 pandemic and the US-China trade war.
Proximity to North American customers, who account for 60% of Hota's sales, and the thriving US electric vehicle (EV) industry were also key factors in the decision.
The factory will be located in Santa Teresa, near the US border with Mexico, and construction is expected to begin early next year, with mass production starting in 2025.
The state of New Mexico will provide $3 million in funding, along with potential additional tax credits, to support the establishment of the factory.
Hota is a key supplier to Tesla, GM, and Ford, and the investment in the US factory reflects the growing importance of the US EV market.
The move is part of a broader trend of Taiwanese companies investing in the US, with Taiwanese chipmaker TSMC committing $40 billion to build two chip factories in Arizona, supporting the US government's plans to boost domestic chipmaking.
How might a delay in the petrol ban impact electric car sales?
How might a delay in the petrol ban impact electric car sales?
A delay in the petrol ban could potentially impact electric car sales.
Tesla's expansion in the US, specifically the construction of a new factory in New Mexico, highlights the growing importance of the US electric vehicle supply chain.
The investment between Taiwan and the United States in New Mexico is expected to have wide-ranging future impacts.
The Taiwanese company Hota, a key supplier to Tesla, GM, and Ford, will build its first US factory in New Mexico, with the state providing $3 million in funding and potential tax credits.
The governor of New Mexico, Michelle Lujan Grisham, expressed confidence in the state's infrastructure and the benefits of Taiwanese manufacturing expertise.
This expansion follows the commitment of Taiwanese chipmaker TSMC to invest $40 billion in building two chip factories in Arizona, supporting US plans to boost domestic chipmaking.
The focus on electric vehicles in New Mexico and the wider bilateral trade between Taiwan and the US highlight the significance of the EV industry.
In a separate development, VinFast, a Vietnamese automaker, plans to deliver electric vehicles to Europe this year, amid the EU's investigation into Chinese rivals.
VinFast, part of Vietnamese conglomerate Vingroup, has been increasing its EV deliveries, primarily in the domestic market, and aims to announce second-quarter results soon.
The delay in the petrol ban could impact electric car sales as it may prolong the availability and use of traditional combustion engine vehicles, potentially slowing the transition to electric vehicles.
VinFast is a Vietnamese automaker that started producing electric vehicles in 2021 after shifting away from internal combustion engines.
VinFast is part of the Vietnamese conglomerate Vingroup.
VinFast plans to deliver electric vehicles to Europe this year, which would be a significant increase from their previous target of delivering 700 cars by last July.
The expansion into Europe comes as the EU investigates Chinese electric vehicle makers, potentially creating a gap in the market.
If VinFast's plans are fulfilled, Europe would become their biggest overseas market this year.
VinFast expects to deliver the first VF8 models to customers in France, Germany, and the Netherlands in the fourth quarter of this year, with other models to follow next year.
The company has a history of revising its targets and has been facing financial losses.
Tesla, on the other hand, is a well-known American electric vehicle manufacturer.
The articles do not provide any direct connection or relationship between VinFast and Tesla.
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