The Mitsubishi Motors logo is displayed at the company’s headquarters in Tokyo. (Toru Hanai/Bloomberg News)
Hon Hai Precision Industry Co. has secured an agreement to make Mitsubishi Motors Corp. electric vehicles, scoring the first major customer for its fledgling EV contract manufacturing business.
Hon Hai, also known as Foxconn, will begin building vehicles for Mitsubishi in Taiwan, a person familiar with the matter said. It’s unclear when production will actually start, but the first cars to roll off the assembly line would target Australia and New Zealand, the person said, asking to remain anonymous discussing a non-public matter. Hon Hai representatives declined to comment March 20, while a Mitsubishi spokesperson said the automaker is always open to collaboration.
Hon Hai is trying to develop businesses from AI servers to EV outsourcing to reduce its reliance on iPhones and consumer electronics. But it has made little headway on plans to assemble cars for the world’s biggest auto names, much as it does for smartphone and computer brands. It has introduced several model vehicles to show off its design and production capabilities. But building up the automotive arm will take years, Hon Hai’s EV business chief Jun Seki told Bloomberg TV in October.
Hon Hai has previously engaged in discussions to buy a slice of Nissan Motor Co., Mitsubishi Motors’ largest shareholder, to further its own ambitions. Hon Hai Chairman Young Liu told analysts on an earnings call last week that he expected to sign an auto contract with a Japanese client within months. In February, Liu also said that the company approached Nissan and Honda Motor Co. about potential cooperation. The news about Mitsubishi was first reported by Kyodo News.
Bloomberg Intelligence analysts Steven Tseng and Sean Chen say: Hon Hai’s potential deal to produce outsourced EVs for Mitsubishi Motors could advance its automotive ambitions by building credentials in vehicle manufacturing via an alliance with an established Japanese brand. This can potentially pave the way for future pacts. Mitsubishi ranked as Japan’s eighth-largest automaker in 2024, with Nissan as its largest shareholder.
