Foxconn and Tencent are working on their own electric smartcar

As rumors swirl that Apple might be developing an electric car one of its major suppliers, Foxconn Technology Group, is moving ahead with its own plans to bring an electric-powered vehicle to China. On Monday, the electronics manufacturer struck a partnership with Chinese Internet giant Tencent and luxury car dealership China Harmony Auto to develop smart electric cars. All three companies are together establishing a special team for the project, Foxconn said. Foxconn, which is based in Taiwan, is perhaps best known for assembling Apple’s iPhone. It might sound odd to hear such a company moving into the car market, but last June, Foxconn CEO Terry Gou outlined plans to move beyond manufacturing and into other technology sectors, including robotics and electric vehicles. Foxconn hopes to build cars priced under US$15,000, according to Gou. The contract manufacturer already develops electric car batteries, which he said were in demand.