Mitsubishi, Foxconn, Electric Vehicles, Automotive

Mitsubishi Motors Partners with Foxconn to Launch EVs in Australia and New Zealand

Latest Update April 22, 2025

Mitsubishi Motors will collaborate with Foxconn to introduce the Model B electric SUV in Australia and New Zealand by 2026.

March 24, 2025 - Mitsubishi Motors has entered a strategic partnership with Taiwan’s Hon Hai Precision Industry Co., Ltd. (better known as Foxconn) to expand its footprint in the electric vehicle (EV) market. Under this collaboration, Mitsubishi plans to introduce Foxconn’s “Model B” compact electric SUV, with sales in Australia and New Zealand expected to begin as early as 2026.

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Strategic Partnership to Enter EV Market in ANZ

The move allows Mitsubishi to better compete with Chinese EV makers expanding globally, while also benefiting from Foxconn’s CDMS (Contract Design and Manufacturing Services) model to reduce development costs. If successful, this partnership may open doors for further collaboration between Foxconn and other Japanese automakers.

“The capabilities of Hon Hai’s EVs remain unproven. However, if the partnership with Mitsubishi succeeds, Japanese automakers may become more open to working with Hon Hai,” commented one auto industry expert.

Foxconn’s CDMS Model Brings Cost Efficiency

Foxconn has long aimed to grow its CDMS business and is actively pursuing partnerships with Japanese manufacturers. At its financial results briefing on the 14th, the company announced its intention to finalize contracts with Japanese clients within two months.

Mitsubishi Motors, known for its off-road vehicles and plug-in hybrid (PHV) models, faces challenges in developing a diverse range of vehicles and powertrains tailored to the regulations of global markets. As a relatively small-scale automaker, Mitsubishi needs strategic collaborations to address this limitation.

Why Mitsubishi Chose Foxconn Over Nissan

This partnership aligns with Mitsubishi’s strategy. “We want to focus on key technical areas such as PHVs, but for other areas, we are open to collaboration,” said Mitsubishi Motors President Takao Kato. “To survive this major shift in the automotive industry, we will rely on partners where necessary.”

Australia and New Zealand are vital markets for Mitsubishi, accounting for just over 10% of its global sales volume and operating profit. New CO2 emission regulations introduced in Australia in January 2025 further pressured Mitsubishi to expand its EV lineup quickly. Instead of sourcing from Nissan, its largest shareholder, Mitsubishi chose Foxconn for this venture.

Australia’s New Emission Regulations Drive Urgency

In Australia, new fuel efficiency and exhaust gas regulations came into effect in January 2025, setting upper limits on CO2 emissions per kilometer for each vehicle model. Manufacturers exceeding those limits face fines. This regulatory pressure made it critical for Mitsubishi to introduce EVs with minimal investment—something made possible through Foxconn’s ready-made EV platform.

Potential Ripple Effects on Japanese Auto Industry

If the partnership evolves, it may also impact suppliers. “This could deepen the relationship, possibly leading Mitsubishi to manufacture Foxconn vehicles at its facilities,” said an executive from a Mitsubishi-affiliated supplier. “Some suppliers may benefit, while others could see reduced orders depending on overlap with Foxconn’s supplier network.”

Balancing Innovation and Existing Stakeholder Interests

As Mitsubishi enters this new phase, it will need to carefully balance the collaboration with Foxconn alongside relationships with shareholders, existing partners like Nissan and Renault, and a wide array of suppliers. The company must draft a global growth strategy that maintains harmony while seizing opportunities in the rapidly evolving EV market.