Foxconn has agreed to acquire half of Mitsubishi Electric Corp’s automotive-components business for JPY 115 billion, expanding its push into electric vehicle contract manufacturing. Mitsubishi Electric anticipates an impairment of roughly JPY 100 billion in the current fiscal year tied to the deal.
The purchase assigns an enterprise value of JPY 320 billion to the business, Mitsubishi Electric Mobility. Its latest annual results, covering the year through March, showed operating profit of JPY 54 billion on revenue of JPY 876 billion.
For the fiscal year through March 2027, the unit forecasts revenue of JPY 820 billion and an adjusted operating margin of 9.3%. The partners aim to build a business generating more than JPY 1 trillion in sales.
Mitsubishi Electric will revise its full-year earnings guidance on October 30. Completion of the stake sale is scheduled for October 2027, provided the necessary regulatory clearances are secured.
At a Tokyo press briefing on Monday, the companies outlined plans to incorporate Mitsubishi Electric’s electric-powertrain, autonomous-driving and in-car intelligence technologies into Foxconn’s EV platforms.
Jun Seki, who oversees EV strategy at Foxconn, said the partnership would bring together the Taiwanese company’s operating scale and execution speed with Mitsubishi Electric’s engineering and production expertise. Foxconn is formally known as Hon Hai Precision Industry Co.
For Mitsubishi Electric, the arrangement provides a partner to expand its automotive-parts operations. Foxconn gains a larger position in the sector as it seeks to apply its contract-production approach to electric vehicles.
The companies intend to pair Mitsubishi Electric’s established automaker connections with Foxconn’s quicker development process. Their plans extend beyond conventional components to platforms supporting electric vehicles and autonomous driving.
The agreement takes shape amid growing competition from Chinese EV manufacturers. Their expansion is challenging a market historically led by Japanese and German carmakers, whose expertise in internal-combustion vehicles has not eased the transition to electric models.
Mitsubishi Electric Mobility, now entirely owned by Mitsubishi Electric, will retain its name initially. Equal ownership may not be permanent, Seki said the partners could reconsider their holdings as the venture evolves. He also expressed hope that, if successful, the business could eventually operate independently of both parents and seek a stock market listing.
