Foxconn, the world’s largest contract electronics manufacturer best known for assembling Apple’s iPhones, is expanding its reach into the automotive industry. The company has announced plans to manufacture electric vehicles (EVs) for Japanese car giant Mitsubishi Motors, marking a meaningful step into the competitive EV market.

The Deal: A Joint Venture in Taiwan

The agreement, currently a memorandum of understanding, outlines a collaboration where a Foxconn joint venture will design and build EVs in Taiwan specifically for Mitsubishi. While the memorandum is a non-binding deal between the two companies, both parties have stated they will proceed with discussions towards a definitive agreement.

Foxtron: The Manufacturing Arm

The vehicles will be produced by Foxtron, Foxconn’s EV joint venture with Taiwanese car maker Yulon Motor. According to the companies, Foxtron will provide design and manufacturing management services and this model is expected to enter the Australia and New zealand markets in the second half of 2026. The anticipated launch date for the new model is by the end of next year, representing Foxconn’s first major contract in the EV sector.

Competitive Landscape and Market Dynamics

japanese car manufacturers, including Mitsubishi, are facing heightened competition from mainland Chinese rivals, particularly in key markets such as South East Asia, South America, and Europe. This collaboration could provide Mitsubishi with a strategic advantage in the rapidly evolving EV market.

Foxconn’s Broader Automotive Ambitions

Foxconn’s foray into EV manufacturing is not entirely new. the company has previously expressed interest in the automotive sector, including considering buying a stake in Japan’s Nissan Motor for “co-operation” as it looked to get into the motor industry. Mitsubishi Motors is currently a junior partner in an alliance between Nissan and French car maker Renault.

China’s Ascendancy in the EV Market

These developments coincide with the rapid expansion of China’s car industry and its emergence as a leader in the global EV market. Established car makers worldwide are struggling to compete with major Chinese players like BYD,which continue to attract new customers.

Expert Analysis

The partnership between Foxconn and Mitsubishi reflects a broader trend of technology companies entering the automotive space. this convergence of technology and automotive expertise is expected to accelerate the advancement and adoption of electric vehicles globally.