Foxconn, also known as Hon Hai Precision Industry, has agreed to invest JPY115 billion ($728 million) for a 50% stake in Mitsubishi Electric Mobility, forming an equally owned automotive equipment joint venture (JV) with Mitsubishi Electric.
The share purchase will be made through Lin Yin International Investment, a wholly owned investment subsidiary of the Taiwanese manufacturing conglomerate, according to an October 16 joint announcement. Mitsubishi Electric will retain the remaining 50%, with the two companies jointly operating the business after completion.
The transaction values Mitsubishi Electric Mobility at an enterprise value of JPY320 billion and an equity value of JPY230 billion.
Completion is scheduled for October 1, 2027, subject to competition and other regulatory approvals in Japan and overseas, as well as other contractual conditions.
Following the transaction, Mitsubishi Electric Mobility will cease to be a consolidated subsidiary of Mitsubishi Electric and become an equity-method affiliate from the third quarter of the financial year ending March 2028.
Combining technology with manufacturing scale
The JV will combine Mitsubishi Electric Mobility’s electric powertrain, automotive software and vehicle-control expertise with Foxconn’s large-scale manufacturing, supply-chain management and market deployment capabilities.
The companies plan to develop electric vehicle (EV) platforms in Japan and continue supplying Mitsubishi Electric Mobility’s existing Japanese and overseas customers, while seeking to expand their sales channels and reach new global markets, according to a spokesperson from Mitsubishi Electric.
The spokesperson confirmed to FinanceAsia that the venture will include all assets and employees associated with its automotive equipment business. The scope covers its main Japanese plants in Himeji and Sanda, Hyogo Prefecture, as well as major overseas facilities in the US, Thailand, China and India.
The partners plan to retain all existing business lines, including products for internal combustion engine and hybrid vehicles, meaning the venture will not operate exclusively as an EV business.
The Tokyo-based manufacturing giant added that Mitsubishi Electric Mobility is targeting revenue of JPY1 trillion for the financial year ending March 2031, with part of the growth expected to come from synergies with Foxconn.
Collaboration expands from data centres into mobility
The two groups’ broader relationship began in November 2025, when they signed a Meorandum of Understanding (MoU) to collaborate on energy-efficient and reliable infrastructure for AI data centres.
Their automotive discussions were formalised on April 24, 2026, when Foxconn and Mitsubishi Electric signed a separate MoU to explore joint ownership of Mitsubishi Electric Mobility and cooperation in electrification, autonomous driving and software-defined vehicles.
Foxconn has been developing its EV business through its open-platform and contract design and manufacturing strategy, with models spanning passenger cars, buses and commercial vehicles. Its subsidiary Foxtron Vehicle Technologies also agreed in May 2025 to design and supply EV models to Mitsubishi Motors for launch in Australia and New Zealand in the second half of 2026.
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