Foxconn May Soon Manufacture Electric Vehicles for Mitsubishi

Taiwan-based contract manufacturer Foxconn is reportedly on the brink of finalizing a partnership with Japanese automotive giant Mitsubishi Motors to produce electric vehicles (EVs). According to various sources from Asia, Foxconn is expected to manufacture EVs under the Mitsubishi brand, aiming to help the Japanese automaker reduce production costs while allowing Foxconn to expand its footprint in the electric vehicle market.

Foxconn, officially known as Hon Hai Precision Industry Co., announced its intentions to enter the electric vehicle sector in 2021, unveiling plans for a range of models including sedans, SUVs, and buses. The company began production of electric buses and motors in 2022, with its electric bus model, the Model T, already operational on the streets of Taiwan. Foxconn aimed to deliver over 10,000 electric SUVs in 2024 and promised to introduce a second electric vehicle model in 2025. However, thus far, the company has only secured partnerships with Taiwanese automakers.

The ongoing discussions with Mitsubishi have been underway for more than six months, as reported by Nikkei Asia, citing unnamed sources. Meanwhile, Kyodo News has indicated that Mitsubishi may announce this collaboration with Foxconn in the coming weeks. The specific electric vehicle models that Foxconn will produce for Mitsubishi have yet to be determined. Although Mitsubishi intends to retain its existing production facilities, it will collaborate with Foxconn to optimize production capacities.

Foxconn has not publicly commented on the matter, while Mitsubishi has stated that the information regarding the partnership did not originate from them. The automaker emphasized its commitment to exploring various partnership opportunities to achieve sustainable growth. Notably, a recent attempt at collaboration among Nissan, Honda, and Mitsubishi was unsuccessful as the three automakers could not agree on a unified partnership structure, although they maintain a strategic alliance, particularly concerning electric vehicles.

Through this potential collaboration with Mitsubishi, Foxconn aims to diversify its offerings beyond its traditional role as a contract manufacturer, primarily known for producing iPhones. The company operates factories in China, India, and other Southeast Asian nations such as Vietnam. Despite Foxconn's ambition to capture a 5% share of the global electric vehicle market by 2025, CEO Young Liu has acknowledged that achieving this target may be challenging due to intensified competition in a slowing electric vehicle market.