Hon Hai acquires shares in Chinese luxury car dealer

TAIPEI--Taiwan-based Hon Hai Precision Industry Co., the world's largest contract electronics maker, said Tuesday that one of its subsidiaries has spent HK$608 million (US$78 million) to acquire shares in China Harmony Auto Holding, a Zhengzhou, China-based company listed in Hong Kong.

Hon Hai said that Foxconn (Far East) acquired 128.734 million shares at a price of HK$4.73 per share, accounting for 10.526 percent of all shares in China Harmony.

Hon Hai said the investment is aimed at industrial cooperation and developing new business.

Market sources said Hon Hai's buying into China Harmony is a strategy for marketing electric cars in China.

China Harmony focuses mainly on high-end luxury and super-luxury brands and aims to become China's first luxury-only auto dealer.

It has 46 outlets and after-sales service centers across China, including in major cities such as Beijing, Guangzhou, Shanghai, Xiamen, Wuhan and Xi'an.

Hon Hai announced in September that it was investing in the electric auto industry in Shanxi Province in North China.