AirPods maker Luxshare Precision invests in EV production as Apple Car rumors continue

Luxshare Precision has recently become a major supplier to Apple. The Chinese company that assembles AirPods and more recently iPhones today announced a joint venture with Chery Group. Chery is an electric vehicle manufacturer headquartered in China.

Luxshare Precision and Chery Group are planning to jointly develop and manufacture electric vehicles. The joint venture will be launched within the next three months with capital of approximately 1.7 billion yuan ($267 million). This also includes the construction of new factories.

Luxshare Precision already holds a 30% stake in the new company, while the remainder will be owned by Chery New Energy, the electric vehicle (EV) unit of Chery Group. Chairman Wang Laichun said that Luxshare Precision will not become a car manufacturer, but will cooperate with Chery to serve the manufacturing of electric vehicles. Luxshare Precision aims to become a leading Tier 1 supplier and its new electric vehicles will not use the Luxshare Precision brand name.

Electric vehicles currently sell for about 100,000 yuan ($15,700), and sales grew 30% last year. Chery Group's total export volume is nearly 270,000 vehicles.

News of the partnership comes after another Apple supplier, Foxconn, signed a partnership agreement with Indian company Vedanta.

The global chip shortage has recently become one of the biggest reasons why suppliers are seeking new areas to do business. This new venture will help Luxshare Precision establish itself in the automotive industry as the company continues to diversify and grow as a supplier.

In addition to these challenges, there are rumors that an "Apple Car" is in development. The car is expected to be a self-driving electric vehicle and be launched within the next few years.

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