Foxtron Vehicle Technologies agreed to acquire Taiwanese automobile brand Luxgen for NT$787 million ($25 million), giving its parent Foxconn a consumer-facing identity as the contract electronics giant expands into electric vehicles.
The transaction, announced Friday, transfers Luxgen’s workforce, dealer network, marketing assets, and after-sales operations across Taiwan to Foxtron, the joint venture Foxconn established with automaker Yulon Motor in 2020. Until now, Foxtron has focused solely on EV design and development.
The acquisition raises questions about whether Foxconn is departing from its stated strategy of providing contract design and manufacturing services to other carmakers rather than building its own brand. A person familiar with internal discussions told Nikkei the Luxgen deal would remain Taiwan-focused and would not undermine the core contract manufacturing approach.
Luxgen has struggled financially, with reported losses since its 2009 founding and more than NT$100 billion in cumulative investment, according to CommonWealth Magazine. Sales of its Foxtron-designed n7 electric SUV briefly exceeded Tesla’s in Taiwan last year but have since declined sharply, falling below 300 units monthly in 2025.
Foxtron itself has accumulated losses of NT$3.4 billion ($108 million). The company recently registered new EV model names in Taiwan, signaling plans to sell vehicles under its own brand domestically.
