Foxconn and Mitsubishi Electric are forming a 50-50 joint venture to develop electric vehicle platforms for automakers, combining their manufacturing capabilities and technical expertise as they pursue opportunities in the global EV market. The partnership will focus on creating vehicle platforms that other manufacturers can use to build new electric models, positioning both companies to participate in an increasingly competitive automotive industry.

The venture, called Mitsubishi Electric Mobility, is currently wholly owned by Mitsubishi Electric. Under the planned arrangement, Mitsubishi Electric will sell Foxconn a 50% stake, bringing together Mitsubishi’s technology and manufacturing expertise with Foxconn’s scale and speed.

Foxconn and Mitsubishi Electric Plan Joint EV Venture

Foxconn, a major Taiwan-based technology manufacturer best known for producing Apple’s iPhone, is expanding its activities into the automotive sector. Its partnership with Mitsubishi Electric will focus on supplying the underlying platforms used to develop electric vehicles rather than simply producing finished vehicles.

The companies plan to establish a 50-50 joint venture that will develop EV platforms and supply them to automakers for use in future models. The arrangement is intended to combine Foxconn’s manufacturing scale and speed with Mitsubishi Electric’s in-house technology and production capabilities.

The partnership comes as competition in the automotive industry intensifies. Chinese manufacturers such as BYD are making significant advances in a market that was once dominated by German and Japanese automakers.

Executives See Electric Vehicles as the Industry’s Future

Kazunori Tanaka, president of Mitsubishi Electric, said the partnership reflects both companies’ belief that electric vehicles represent the future of the automotive industry. He also identified autonomous driving technology as an emerging feature that could become indispensable in future vehicles.

Jun Seki, Foxconn’s chief strategy officer for EVs, believes electric cars could account for 80% of the future automotive market. Both Seki and Tanaka also believe the spread of self-driving technology will accelerate the global adoption of electric vehicles.

The executives’ expectations highlight the two companies’ shared view that electrification and autonomous driving will play important roles in the automotive industry’s development. Their joint venture is designed to bring their respective capabilities together as they pursue opportunities in these areas.

Mitsubishi Electric Sees Opportunity for a Global EV Platform

Mitsubishi Electric Executive Vice President Kunihiko Kaga hopes the partnership will lead to the development of a global EV platform originating in Japan. He said Mitsubishi Electric shares Foxconn’s vision of delivering both quality and speed.

By combining their expertise through Mitsubishi Electric Mobility, the companies aim to develop platforms that can serve automakers across the industry. The planned 50-50 ownership structure will give Foxconn an equal stake in the venture alongside Mitsubishi Electric.

Global EV Ambitions Face an Uncertain Market

The partnership reflects the companies’ confidence in the long-term potential of electric vehicles, but market conditions vary across regions. While EV adoption appears to be increasing globally, sales in the United States remain stagnant.

Foxconn and Mitsubishi Electric are betting that their combined manufacturing and technological capabilities can help them compete as the automotive industry evolves. Whether their optimism translates into success will depend on how the partnership performs in an increasingly competitive and volatile EV market.