Foxconn, a Taiwanese electronics manufacturer, is reportedly nearing a deal to supply electric buses to Mitsubishi Fuso Truck and Bus, a subsidiary of Daimler Truck.

The information was reported by Nikkei on June 26, 2025.

The partnership would involve Mitsubishi Fuso selling two bus models, the Model T and Model U, developed by Foxconn, under its own brand.

Both companies are also considering forming a new entity to manage the production and distribution of these buses.

The company has not responded to requests for comment on the latest developments. Daimler Truck also declined to comment.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Foxconn’s strategic diversification beyond Apple dependency

This Mitsubishi Fuso partnership represents Foxconn’s continued strategy to reduce its historical dependence on Apple, which accounted for approximately 60% of its $136 billion revenue in 2016 1.

The company’s EV ambitions aren’t new. Foxconn has been systematically expanding into automotive manufacturing for years, including backing Future Mobility (now Byton) in 2016 alongside Tencent 2.

For Foxconn, electric buses provide a logical entry point into commercial EVs, leveraging their manufacturing expertise while avoiding the intensely competitive consumer EV market where margins are frequently compressed.

The Model T bus and Model U microbus represent Foxconn’s ability to develop complete vehicle platforms rather than just components, signaling their evolution from contract manufacturer to full-solution provider 3.

2️⃣ Japan’s accelerating commercial vehicle electrification driven by policy and demographics

Mitsubishi Fuso’s partnership with Foxconn aligns with Japan’s aggressive climate targets, which include a 46% reduction in greenhouse gas emissions by 2030 and carbon neutrality by 2050 4.

The company has set the most ambitious decarbonization timeline among Japanese OEMs, targeting CO2 neutrality at all its Japanese production sites by 2025, having already reduced emissions by over 20% from 2015 levels 4.

This electric bus initiative complements Mitsubishi Fuso’s other advanced transportation projects, including plans to operate Level 4 autonomous trucks by 2025 to address Japan’s severe driver shortage caused by its aging population 5.