Foxconn, best known as Apple’s iPhone assembler, is entering the global electric vehicle market with its first contract to supply an established automaker, Mitsubishi, with a full electric model.
Mitsubishi announced it has signed a memorandum of understanding (MoU) with Foxtron, the EV arm of Taiwan’s Hon Hai Precision Industry Corporation (or Foxconn), to develop a compact electric crossover to be sold in the second half of 2026, starting in the Oceania region. Yulon Motor, Foxconn’s partner in the Foxtron joint venture, will manufacture the vehicle in Taiwan.
Saving time and cost
For Mitsubishi, the deal marks a notable shift in strategy. Analysts view it as a rare case of a major Japanese automaker turning to a non-automotive contract manufacturer for an entire vehicle program. Mitsubishi’s decision reflects its aim to accelerate its EV offerings without the time and cost of building new models from scratch.
Foxconn has moved aggressively to diversify into electric vehicles as growth slows in its traditional electronics businesses. The company has actively pursued alliances with Japanese carmakers, led by former Nissan executive Jun Seki. It builds upon a clean-slate technology and design concept for EVs, which can be sold to and branded by interested parties.
Beyond Mitsubishi, Foxconn has expressed interest in partnerships with Nissan and Honda, and earlier this year floated the idea of acquiring Renault’s stake in the struggling Nissan-Renault alliance. The Taiwanese company also entered a joint venture with Chinese giant Geely in 2021.
Based on Model B
Mitsubishi’s vehicle is expected to be based on the Foxtron Model B, a compact crossover first shown at CES in Las Vegas and slated for release in Taiwan later this year. Foxtron says the model features an advanced infotainment system and modular architecture designed to reduce costs and speed up production timelines.
Foxtron lists 11 EVs across various segments, from buses and pickups to sedans and crossovers. The company also has aspirations to sell EVs in the US, where it plans to begin deliveries this year.
At this point, the Mitsubishi version of the Model B stands the best chance of landing in Europe, as Foxtron’s previous plans to enter the European market seem to have cooled.
Furthermore, Mitsubishi’s Foxtron tie-up is one of two parallel EV initiatives announced this week. The automaker also said it will launch a new EV based on the next-generation Nissan Leaf, manufactured by Nissan.
In return, the brand will supply Nissan with one of its plug-in hybrid models, part of a broader effort to leverage alliance synergies and expand its electrified lineup.
A new trend?
Mitsubishi aims for all of its models to be electrified—either full EV or hybrid—by 2035 and has committed $10 billion through 2030 toward EV and battery development. However, its passenger EV offerings remain limited, with the Japan-only eK X minicar and the Minicab commercial van.
While Mitsubishi’s MoU with Foxconn is non-binding, both sides have indicated that further talks are underway. If finalized, the deal would launch Foxconn into mainstream auto manufacturing and could signal a trend in how car companies source their next-generation products.
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