Foxtron Fully Acquires LUXGEN to Accelerate Foxconn's EV Brand Strategy

[M&A News] Foxtron has announced the acquisition of 100% equity in LUXGEN for approximately RMB 176 million.

⚡ Core Strategic Shift: From Contract Manufacturing to Brand Operations

Foxtron, a joint venture between Hon Hai Group (Foxconn’s parent company) and Yulon Group (holding 51% vs. 49%), aims through this full acquisition of LUXGEN to integrate its distribution channels, service systems, and marketing resources, advancing its electric vehicle strategy from a CDMS (Contract Design and Manufacturing Service) model toward vertically integrated brand operations.

📊 Key Figures: NT$7.876 Billion Deal Closed

The transaction was valued at NT$7.876 billion. Following completion, existing LUXGEN vehicle owners will experience no disruption to after-sales services, parts supply, or warranty entitlements. The first co-developed model, the N7, has already achieved initial sales success in the Taiwanese market.

🔍 Underlying Strategy: Filling the Gap Left by Contract Manufacturing Retreat

This move comes against the backdrop of Hon Hai Group terminating its EV contract manufacturing plans and pivoting toward AI computing infrastructure. It highlights the group’s intent to use the LUXGEN brand as a testing ground while exploring an independent operational path—despite the significant challenges remaining for its previously stated goal of capturing 5% of the global EV market share (750,000 units) by 2025.