Mitsubishi Electric is preparing to bring Taiwan’s Foxconn in as an investor in its automotive parts subsidiary, Mitsubishi Electric Mobility, through the sale of a 50% stake.
Sources cited by Nikkei Asia said the Japanese group is working through the final terms of the transaction, with a final agreement expected by May.
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The companies plan to run the business together, in a structure Mitsubishi Electric chose after previously weighing a potential withdrawal from the automotive parts segment.
The tie-up is intended to sharpen Mitsubishi Electric Mobility’s position in the automotive components market by drawing on Foxconn’s cost advantages.
According to the report, Mitsubishi Electric Mobility posted sales of Y919.2bn ($5.77bn) for the fiscal year ended March 2025, driven largely by its automotive equipment business, including alternators and starters.
The news comes as Mitsubishi Motors Corporation reported a modest fall in global revenues to Y1,976.5bn for the first nine months of FY26 (April to December 2025).
Operating profit dropped more than 30% to Y31.6bn, and the carmaker recorded a net loss of Y4.49bn, versus net profit of Y33.2bn in the same period a year earlier.
Foxconn has also been involved in other Mitsubishi-linked mobility initiatives.
Earlier this year, Foxconn and Mitsubishi Fuso Truck and Bus Corporation (MFTBC) set out plans to create a new Japan-based bus manufacturer to develop and produce zero-emission models.
The proposed OEM is expected to concentrate on electric buses for both Japan and overseas markets, while continuing work on internal combustion engine vehicles.
MFTBC has additionally increased its engineering presence in India by opening the Fuso Tech Centre India (FTCI) in Kanchipuram, Tamil Nadu.
The site brings together engineering and technical work previously handled within the Daimler Truck Group structure, with a focus on bolstering in-house product engineering and operational functions.
Together, the moves point to a greater emphasis on partnerships and structural changes across Mitsubishi-related mobility activities, including Mitsubishi Electric’s automotive operations.
