Tech firm FPT launches $100 million automotive unit | Image:Pexels

Vietnam’s foremost technology company, FPT, announced the establishment of its automotive technology subsidiary, FPT Automotive, in Texas, with plans for a $100-million investment over the next five years. 

With a  focus on global expansion, the unit aims to cater to esteemed clients such as Hyundai and Honda, leveraging FPT’s software expertise, including AI, cloud services, big data, chip design, and education.

Pham Minh Tuan, CEO of FPT Software said, “We anticipate a total of $100 million investment in the next five years, at the minimum.” 

The company’s strategic focus includes key markets such as the United States, Europe, Japan, South Korea, China, India, and Vietnam.

While affirming global expansion plans, the FPT chairman clarified that there are no immediate intentions to go public overseas for fundraising.

The automotive industry has witnessed a notable shift towards software-defined vehicles, offering enhanced flexibility, safety, and user experience. 

FPT’s move into the automotive sector aligns with the industry trend, with Boston Consulting Group estimating that software-defined vehicles could contribute over $650 billion in value to the auto industry by 2030.

Establishing a presence in the US, particularly in Texas, allows FPT Automotive to stay abreast of the latest technology advancements in software-defined vehicles, while maintaining a global customer focus. 

FPT Automotive already boasts leading automakers such as Hyundai, Honda, Volvo, and Vietnamese electric vehicle manufacturer VinFast among its clients.

Tuan expressed the ambition for FPT Automotive to evolve into a billion-dollar automotive services and products provider by 2030. The company’s development strategies include considerations for acquisitions and partnerships with industry leaders.

(With Reuters Inputs)