Foxconn wants to be contract manufacturer for Japanese brands; Mitsubishi EV deal being finalised

We’re living in a world where carmakers are banding together just to survive, and one electronics manufacturer sees this as an opportunity to enter the automotive industry in a big way. Taiwanese iPhone maker Foxconn has its sights set on being a contract manufacturer, working with Japanese carmakers, including Nissan, to form a strong alliance between the two countries, Nikkei Asia reports.

The company’s chief strategy officer Jun Seki, a Nissan veteran and former vice chief operating officer, indicated as much in an interview with the publication on Tuesday. “When doing something together, compatibility is the most important thing…From our perspective, the compatibility with Japanese automakers, especially Nissan, will become a strength,” he said.

Seki, who joined Foxconn in 2023 to oversee its EV business, added that “the Japan-Taiwan [business] relationship will be important” from a geopolitical perspective. “TSMC [Taiwan Semiconductor Manufacturing Company, which produces chips for Apple and Qualcomm] and others have already strengthened it.”

It’s been reported that Foxconn was finalising a deal with Mitsubishi to supply its EVs, and Seki confirmed this during the interview. The firm’s first partnership with a major carmaker will see it launch its first model in Australia next year, believed to be the Model B small crossover according to Carsales. The company will also produce buses for the Japanese market.

Foxconn is touting its expertise in integrating tech and electronics, as well as operating efficiency. The company has been making EVs with local carmaker Yulon Group since 2023 and has already commercialised the Model C under the latter’s Luxgen brand. “We are very confident on speed and cost…because it’s an EV. It was impossible to do this with an engine and transmission. EV [production is] much simpler,” Seki said.

Having “reference vehicles”, as Foxconn calls it, allows its clients to quickly launch new EVs under their own brand names, with minor changes to suit their requirements and design language, of course. Seki made it clear that the company doesn’t intend to market its cars under its own name, despite creating the Foxtron moniker.

“We do our business in the B2B market. We don’t intend to compete with current carmakers. Of course, we want carmakers who use our vehicles to run their business well,” he said.

Foxconn presented its pitch to automotive industry insiders, suppliers and the media in Tokyo yesterday. “Our motto is localization,” Seki remarked, adding that once the company reaches a sustainable production volume, “we should produce in the US what we sell in the US.” Japanese production is also on the agenda.

Seki said Foxconn aims to replicate its success in the electronics manufacturing segment, having swept up a 46.1% market share in 2023. “We believe that we can get 40% of the market share also in the automotive sector. But if we start our own [EV] brand, our clients will never trust us…We don’t [see] any value in it.”

It’s been widely reported that Foxconn had been trying to strike a deal to partner Nissan, having also approached the latter and Honda when the two were in merger talks. Once those discussions fell through, Foxconn proposed a four-way collaboration that would also include Mitsubishi. “We are interested in working together with all carmakers,” Seki said. “I think that it’s a great idea for us to join the three-company alliance of Honda, Nissan and Mitsubishi.”

He added that Foxconn has “never communicated from our side” with Nissan, although he declined to say whether he had approached Honda. Seki said “I’m waiting for the right time” to make a proposal to Nissan.

Foxconn is targeting Japanese carmakers in particular because it believes they have yet to make a big impact on the EV market, having been usurped by Tesla and Chinese carmakers such as BYD. “[The shift to] EVs will never go back,” Seki said, referencing their shortening charging times and lowering prices. “Spring for EVs is just around the corner…Please wake up, Japanese automakers.”

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