Technology firm FPT launches $100 million automotive unit in Texas for global expansion

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

With a  focus on global expansion, 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 next five years, at minimum." 

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

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

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

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

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

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

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

(With Reuters Inputs)