Foxconn is acquiring half of Mitsubishi Electric Mobility. It seeks to grow in the field of electric mobility.
Foxconn and Mitsubishi Electric will team up in automotive technologies. The deal worth 115 billion yen is intended to support the development of platforms for electric vehicles.
Foxconn will acquire half of the Japanese supplier
Foxconn is expanding its presence in the automotive industry. Through its subsidiary Lin Yin International Investment, it has agreed to acquire 50% of Mitsubishi Electric Mobility, a supplier of automotive technologies.
It will pay approximately 115 billion yen for half of the company, which is roughly equivalent to 15.8 billion crowns. Mitsubishi Electric will retain the other half. The partners aim to jointly develop electric drives, software, and other vehicle components.
The agreement was announced on October 16, with the transfer of shares expected on October 1, 2027. Completion still depends on meeting contractual conditions and obtaining necessary approvals from authorities. Until then, Mitsubishi Electric Mobility remains entirely under Japanese control.
Electric Powertrains and Autonomous Driving
The collaboration will combine Mitsubishi Electric Mobility’s expertise in automotive electronics development with Foxconn’s manufacturing capabilities. The result is expected to be electric vehicle platforms developed in Japan that other automakers can use.
The Japanese company brings expertise in inverters and electronic drive control, for example. Inverters convert direct current from the battery into alternating current for the electric motor. These components are among the key elements of electric vehicles.
The plans also include autonomous driving and smart cockpit systems. Foxconn will thereby expand its technology offerings for automotive customers. In addition to manufacturing, it aims to assist them with the development and integration of various vehicle components.
The goal is a trillion-yen revenue target
Mitsubishi Electric’s automotive division reported consolidated sales of 875.6 billion yen for the fiscal year FY2026. It expects a decline to 820 billion yen for FY2027. Collaboration with Foxconn is intended to drive further growth.
The company’s presentation for the fiscal year labeled FY2031 sets a target of exceeding one trillion yen in annual revenue. Achieving this goal is expected to be aided by the development of key technologies and new services. The plan also includes ending unprofitable operations.
The joint venture aims to target customers in Japan and abroad. For Foxconn, it represents another step toward a stronger position among electric vehicle suppliers. Mitsubishi Electric, on the other hand, gains a partner with extensive manufacturing capabilities and global reach.
Sources:
original text / Elektrickevozy.cz
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