Tech company FPT launches $100 million automotive division | Image:pexel
FPT, Vietnam’s largest technology company, announced that it will establish an automotive technology subsidiary in Texas, FPT Automotive, with a planned investment of $100 million over the next five years.
The division will focus on global expansion and aim to leverage FPT’s software expertise, including AI, cloud services, big data, chip design and education, to serve esteemed customers such as Hyundai and Honda.
“We expect to invest a total of at least $100 million over the next five years,” said FPT Software CEO Pham Minh Tuan.
The company’s strategic focus includes key markets such as the United States, Europe, Japan, South Korea, China, India, and Vietnam.
While FPT’s chairman affirmed the company’s global expansion plans, he made it clear that the company has no immediate intention of going public overseas to raise funds.
The automotive industry has seen a significant shift towards software-defined vehicles, offering enhanced flexibility, safety, and user experience.
FPT’s move into automotive is in line with industry trends, with Boston Consulting Group predicting that software-defined vehicles could add more than $650 billion in value to the auto industry by 2030. It is estimated that.
Establishing a presence in the United States, specifically Texas, will allow FPT Automotive to keep pace with the latest technological advancements in software-defined vehicles while focusing on its global customers.
FPT Automotive already has major automakers as customers, including Hyundai, Honda, Volvo, and Vietnamese electric car maker VinFast.
Mr. Tuan expressed FPT Automotive’s ambition to evolve into a $1 billion automotive service and product provider by 2030. The company’s development strategy includes exploring acquisitions and partnerships with industry leaders.
(according to Reuters information)