Foxconn, the world's largest contract electronics manufacturer, and Mitsubishi Motors, a veteran Japanese automaker, are joining forces to accelerate the development and production of electric vehicles (EVs). This collaboration, formalized through a memorandum of understanding (MOU), signifies a strategic move for both companies as they navigate the rapidly evolving automotive landscape.

Under the agreement, Foxtron Vehicle Technologies, a subsidiary of Foxconn, will develop and supply an EV model to Mitsubishi as an original equipment manufacturer (OEM). This EV is slated for launch in Australia and New Zealand in the second half of 2026. Yulon Motor Co., Ltd., a Taiwanese company that partners with Hon Hai, will manufacture the EV in Taiwan. Mitsubishi Motors has confirmed that discussions are continuing toward a definitive agreement.

Mitsubishi Motors views Foxtron's EV solutions as well-suited for the Australia and New Zealand markets, citing their "excellent driving performance and infotainment system". This partnership allows Mitsubishi to enhance its electric vehicle lineup and accelerate its efforts toward achieving carbon neutrality. Mitsubishi has set a target to have all of its product lineup be EVs or hybrids by 2035. This aligns with the company's "Momentum 2030" plan, which includes launching new or updated vehicles every year from 2026 to 2030, while also strengthening its position in the US and Canada.

Foxconn's strategic rationale for this partnership is multifaceted. The company is actively working to diversify beyond its core iPhone assembly business and enter higher-margin segments. Foxconn has been explicit about its timeline, acknowledging that its EV business will need several years to develop amid slowing global EV sales. This collaboration with Mitsubishi gives Hon Hai its first major customer for its EV contract manufacturing business. Foxconn aims to secure 5% of global EV manufacturing by 2025.

Foxconn has been making significant investments in the EV sector, establishing a dedicated EV division and developing its own EV platform, known as the Mobility in Harmony (MIH) platform. The MIH platform is designed as an open-source software and hardware platform for EVs, with the goal of enabling partners to quickly develop a variety of EV models. The Mitsubishi EV model will be based on the “EV solution from Foxtron,” presumably the company's own MIH electric car platform.

This partnership also reflects a shift in Japan-Taiwan industrial relations. Historically, Japanese automakers have had insular business practices, with Taiwanese companies often serving as subordinate suppliers. This collaboration signals a move towards a more collaborative relationship, with Foxconn becoming a development partner for Mitsubishi.

The collaboration between Foxconn and Mitsubishi Motors represents a significant step towards accelerating EV development and adoption. By combining Foxconn's manufacturing expertise and open platform strategy with Mitsubishi's automotive experience and market presence, the two companies aim to deliver competitive EVs and drive the transition towards a cleaner, more sustainable automotive future.