Foxtron Vehicle Technologies, a subsidiary of Taiwan’s Hon Hai Precision Industry Co. (known as Foxconn), has signed a MoU with Japan’s Mitsubishi Motors for EV development.

Under the MoU, Foxtron will develop and supply an EV model to Mitsubishi as an original equipment manufacturer (OEM).

Mitsubishi Motors has confirmed that discussions are continuing towards a definitive agreement.

The EV model will be developed by Foxtron and manufactured in Taiwan by Yulon Motor Co., which partners with Hon Hai.

The vehicle is expected to launch in Australia and New Zealand in the second half of 2026.

🔗 Source: Focus Taiwan

🧠 Food for thought

1️⃣ Hon Hai’s EV pivot follows historical pattern of strategic transformation

Hon Hai’s move into electric vehicle manufacturing with Mitsubishi reflects a carefully planned diversification strategy beyond its core iPhone assembly business.

This partnership comes as Hon Hai actively courts Japanese automakers, with CSO Jun Seki (a 33-year Nissan veteran) specifically working to build trust in Japan’s automotive sector1.

The company has been explicit about its timeline, acknowledging that its EV business will need several years to develop amid slowing global EV sales, particularly at its Ohio facility which has capacity for 350,000 vehicles annually2.

This strategic transformation mirrors Hon Hai’s 2016 acquisition of Sharp for $3.5 billion, which represented the company’s first major move upstream into branded consumer electronics from pure contract manufacturing3.

Both moves demonstrate Hon Hai’s consistent pattern of leveraging manufacturing expertise to enter higher-margin segments, with the company targeting 5% of global EV manufacturing by 2025, a strategy requiring significant Japanese partnerships to achieve2.

2️⃣ The deal represents a shift in Japan-Taiwan industrial relations

The Mitsubishi-Foxtron partnership signals an important evolution in Japanese automakers’ approach to external manufacturing partnerships, particularly with Taiwanese companies.

Historically, Japan’s electronics and automotive industries have been characterized by insular business practices, with Taiwanese companies typically positioned as subordinate suppliers rather than development partners4.