Famous for its LCD technology, Sharp has announced plans to officially enter the electric vehicle (EV) market in the coming years, aiming to tap into the rapidly growing new energy sector. Sharp's executive director, Mototaka Tanigaya, revealed that the company is considering a partnership with its parent company, Foxconn (Hon Hai Precision Industry), to develop EV products. This ambitious pivot has drawn significant attention within the industry.
Sharp's decision to venture into the electric vehicle market is understandable. In recent years, the company's traditional business has underperformed, with revenue in continuous decline. According to reports, Sharp suffered a loss of ¥150 billion in fiscal 2023, with its LCD panel business particularly hard-hit by market contraction. In response to this crisis, Sharp is eyeing the EV sector as a potential new growth driver. Analysts point out that Sharp’s expertise in battery technology, especially lithium batteries, may give it an edge in its automotive ambitions.
However, Sharp’s EV plans are closely tied to Foxconn’s strategic backing. In 2020, Foxconn launched the MIH EV platform, marking its formal entry into the electric vehicle market, with a goal of capturing 5% of the global market by 2025. As a subsidiary of Foxconn, Sharp's car-making initiative is likely part of this broader strategy.
Sharp is not alone in this move. Other home appliance manufacturers, such as Skyworth and Midea, have also ventured into the EV sector. With increasing competition in the home appliance industry, companies are seeking diversification to avoid market saturation risks. The growth potential of the EV market has caught the attention of these consumer electronics giants, especially as the transition from traditional fuel vehicles to electric vehicles becomes more apparent.
Nevertheless, the road to car manufacturing for these companies is fraught with challenges. So far, the market performance of new entrants has fallen short of expectations. For example, Skyworth sold just 8,646 units in the first eight months of 2024, far from achieving large-scale growth. Despite this, home appliance companies are leveraging their strengths in supply chain management and marketing channels to carve out a foothold in the automotive industry.
Sharp’s foray into the EV market is more than just a search for new growth opportunities—it is a gamble with its own fate. Once a global leader in LCD manufacturing, whether Sharp can turn its existing resources into a competitive advantage in the new energy sector remains uncertain.