Foxconn Group will jointly develop electric vehicles with Fisker Inc. To include its major customersAppleTechnology companies are looking to improve their capabilities in the automotive sector as they seek to enter the field.

The electric car will be manufactured by Hon Hai under the Fisker brand and sold in North America, Europe, Chinese mainland and India, and is expected to be in mass production in the fourth quarter of 2023, according to a joint statement issued by the two companies on Wednesday.

Hon Hai launched its first electric vehicle chassis and software platform in October to help carmakers bring electric vehicles to market faster. Liu Yangwei, chairman of Hon Hai, said this month that two light passenger cars based on the Hon Hai platform would be launched in the fourth quarter. Hon Hai also plans to help launch an electric bus at the same time.

According to the statement, Hon Hai expects the annual production of the partnership with Fisk to exceed 250000 vehicles. Hon Hai may choose to produce some of it in the US, according to a person familiar with the matter. The two sides said they would reach a formal agreement in the second quarter of 2021.

Fisk is the second electric car company founded by veteran car designer Henrik Fisker, and its first model, the Ocean electric SUV, is scheduled to start production by the end of 2022. Fisker Automotive, Henrik Fisker's first company, filed for bankruptcy in 2013.