Japanese automaker Mitsubishi Motors plans to outsource electric vehicle (EV) production to Taiwanese electronics giant Foxconn (Hon Hai Precision Industry). This marks Foxconn’s first venture into manufacturing vehicles for a Japanese company.
Industry sources revealed on Friday that Mitsubishi Motors is partnering with Foxconn to establish a cost-effective production system and expand its EV lineup.
Under this collaboration, Foxconn will manufacture EV passenger cars for Mitsubishi at its Taiwan facility, initially targeting the Oceania market. These vehicles will be sold under the Mitsubishi brand, with the first models expected to launch as early as 2026. The automaker is also considering expanding sales to Asian and European markets.
The partnership benefits both companies. Foxconn uses its manufacturing expertise to reduce production costs, while Mitsubishi strengthens its ability to expand its vehicle lineup. As a minor player compared to Toyota, Honda, and Nissan, Mitsubishi has sought external collaborations to remain competitive. The deal with Foxconn aligns with this strategy.
Reports suggest that Foxconn has explored similar partnerships with other Japanese automakers, including Honda and Nissan. There has also been speculation about potential management involvement or an acquisition by Nissan, indicating shared interests between the companies. Foxconn has reportedly proposed collaborations with Honda as well.
Foxconn, best known as the world’s largest contract manufacturer for products like Apple iPhones, made a major shift into the EV sector in 2020. The company launched its EV platform, the MIH Alliance, and unveiled three electric vehicle models in 2021. It has set an ambitious goal of producing 3 million vehicles annually by 2027.
Foxconn views EVs as its next major revenue stream after its success in smartphones and servers. It is strengthening its technological capabilities by integrating vehicle software and battery components while pursuing a comprehensive contract manufacturing model covering design and production.
However, its expansion into North American and European markets has faced challenges. Since announcing its EV business in 2019, Foxconn has introduced some vehicles in Taiwan but struggled to establish partnerships with U.S. EV startups, some of which have since gone bankrupt. Given these setbacks, collaborations with established Japanese automakers could provide Foxconn with a crucial foothold for global expansion.
Kyodo News noted that as Chinese firms gain influence in the EV market, industry watchers closely monitor the potential for increased partnerships between Japanese and Taiwanese companies.
Foxconn appears to focus on Japan as its initial overseas revenue source for contract-based EV production. If it secures additional deals with Japanese automakers like Nissan and Honda, it could position itself as the automotive industry’s go-to contract manufacturer, mirroring its electronics dominance.
