Mitsubishi Electric and Hon Hai automotive partnership

Mitsubishi Electric and Hon Hai Precision Industry (Foxconn) have entered into a final agreement for a strategic alliance to jointly operate Mitsubishi Electric’s automotive equipment business through a subsidiary, Mitsubishi Electric Mobility.

Under the terms of the deal, Hon Hai’s investment arm, Lin Yin International Investment, will acquire a 50% stake in Mitsubishi Electric Mobility for 115 billion yen. The transaction, which values the automotive business at 320 billion yen, is subject to regulatory approvals and is expected to be completed by October 2027. As part of the process, Mitsubishi Electric will undergo a corporate split to transfer automotive rights and obligations to the new mobility unit. The company anticipates recording an impairment loss of approximately 100 billion yen in its consolidated financial results for the fiscal year ending March 2027.

The partnership intends to merge Mitsubishi Electric’s expertise in electric powertrains, software, control systems, and autonomous driving technologies with Hon Hai’s manufacturing scale and market speed to develop a Japan-based electric vehicle (EV) platform. Through this joint venture, the companies aim to expand into next-generation mobility solutions, such as automated driving and intelligent cabin systems. Mitsubishi Electric intends to leverage this alliance to support the sustainable growth of the Japanese automotive industry, targeting a revenue milestone of 1 trillion yen by 2030.