The automotive world was stunned yesterday when Mitsubishi Motors and Foxconn Technology Group announced their unprecedented partnership to develop and manufacture electric vehicles for the Australian market.
This collaboration represents a dramatic shift in traditional automotive manufacturing paradigms, bringing together a legacy Japanese automaker with the world’s largest electronics contract manufacturer in a move that could redefine how cars are produced in the electric age.
Industry analysts are already calling this “one of the most significant automotive manufacturing partnerships of the decade” with far-reaching implications for both companies and the broader EV landscape.
The announcement, made during a joint press conference in Sydney, revealed that the first Mitsubishi-branded electric vehicles manufactured by Foxconn are expected to roll off production lines in late 2026, with Australian consumers seeing these vehicles in showrooms by early 2027.
The initial production target is set at 30,000 vehicles annually, with plans to scale up based on market response and demand forecasts.
This venture represents Foxconn’s first major automotive manufacturing deal specifically targeting the Australian market, while for Mitsubishi, it signals a bold new approach to electrification strategy in a key market.
The Unlikely Partnership: Automotive Tradition Meets Tech Manufacturing
At first glance, Mitsubishi Motors and Foxconn might seem like improbable partners.
Mitsubishi, founded in 1870 and entering the automotive market in 1917, represents traditional Japanese manufacturing excellence with over a century of vehicle production experience.
Foxconn, meanwhile, is best known as the manufacturer of Apple’s iPhones and other consumer electronics, having only recently begun its ambitious expansion into the electric vehicle space through its MIH (Mobility in Harmony) platform announced in 2020.
“This partnership exemplifies how the automotive industry is evolving beyond traditional boundaries,” explains Dr. Sophia Chen, automotive industry analyst at Global Mobility Insights.
“Legacy automakers bring brand heritage, design language, and distribution networks, while tech manufacturers like Foxconn offer expertise in efficient electronics production, supply chain management, and the ability to scale quickly. It’s a complementary relationship that makes increasing sense in the electrified era.”
The collaboration leverages Foxconn’s manufacturing prowess and experience with complex electronics alongside Mitsubishi’s automotive design expertise and established presence in the Australian market.
Under the agreement, Foxconn will handle production and component sourcing, while Mitsubishi will lead vehicle design, branding, distribution, and after-sales service.
This division of responsibilities plays to each company’s core strengths while creating a new model for bringing electric vehicles to market.
Mark Davidson, who heads Mitsubishi Motors Australia, emphasized the strategic importance of the partnership during the announcement: “Australia represents a unique automotive market with specific challenges and opportunities for electric vehicle adoption.
By partnering with Foxconn, we gain manufacturing agility and technological integration capabilities that allow us to bring tailored electric mobility solutions to Australian consumers more quickly and efficiently than conventional development approaches.”
Australia: The Strategic Testing Ground
The decision to focus this partnership specifically on the Australian market reflects strategic thinking from both companies.
Australia presents a unique combination of challenges and opportunities for electric vehicle manufacturers: a relatively wealthy consumer base, increasing environmental consciousness, and government incentives for EV adoption, balanced against vast distances between population centers and historically slow EV uptake compared to other developed markets.
“Australia functions as an ideal test market for this new manufacturing approach,” notes automotive industry consultant James Wilson.
“It’s large enough to be commercially significant but contained enough to manage risk. The country’s unique driving conditions – from dense urban environments to remote outback roads – also provide excellent testing scenarios for vehicles that might eventually be adapted for other markets.”
The Australian government has welcomed the announcement, with Federal Minister for Industry and Innovation, Sarah Mitchell, calling it “a vote of confidence in Australia’s electric vehicle future and our importance in the global automotive landscape.”
The government has indicated it will support the venture through its recently expanded Electric Vehicle Manufacturing Incentive Program, though specific financial details remain undisclosed.
For Australians, this partnership promises to deliver electric vehicles specifically designed for local conditions and preferences.
Market research conducted by both companies identified key priorities for Australian consumers, including longer range capabilities to address “range anxiety” in a country of vast distances, robust systems that can withstand extreme temperatures, and pricing structures that make electric mobility more accessible than current import-heavy options.
Inside the Deal: Manufacturing Locations and Investment
One of the most significant aspects of the partnership is Foxconn’s commitment to establishing local manufacturing presence in Australia, marking a substantial foreign direct investment in the country’s manufacturing sector.
According to sources close to the deal, Foxconn will invest approximately AUD 450 million (roughly USD 300 million) to retrofit an existing industrial facility in Geelong, Victoria – a region with deep automotive manufacturing heritage following the departure of traditional car manufacturers over the past decade.
The Geelong facility is expected to employ around 850 workers when production reaches full capacity, with additional jobs created through the local supply chain.
This represents a welcome revival for Australia’s automotive manufacturing sector, which has seen significant contraction since the closure of manufacturing plants by Toyota, Ford, and Holden between 2016 and 2017.
“This investment recognizes the quality of Australian manufacturing capabilities and our skilled workforce,” said Victorian Premier David Thompson at the announcement event.
“Victoria has a proud automotive manufacturing history, and this partnership between Foxconn and Mitsubishi ensures that legacy continues into the electric era, creating high-skilled jobs while positioning our state as a hub for advanced manufacturing.”
The manufacturing approach will utilize Foxconn’s “MIH Open Platform” – a modular electric vehicle architecture that the company has developed as a foundation for various vehicle types and brands.
This platform-sharing approach allows for cost efficiencies while still enabling Mitsubishi to implement its distinctive design language and vehicle characteristics.
Initial production will focus on two models: a compact crossover SUV and a mid-sized pickup truck, both vehicle categories that perform strongly in the Australian market.
The Vehicles: What Australians Can Expect
While full specifications and designs remain under wraps, preliminary information suggests that the first model to enter production will be a compact crossover SUV codenamed “Project Horizon.”
This vehicle will reportedly offer range capabilities of approximately 500 kilometers (310 miles) on a single charge – a figure specifically targeted to address Australian consumers’ concerns about range anxiety in a country known for long distances between population centers.
The second planned model, a mid-sized electric pickup truck tentatively named “Outlander Sport,” responds directly to Australia’s enduring love affair with utility vehicles and recognizes the growth potential in the electric truck segment.
This model aims to combine work capabilities with zero-emission technology, targeting both business fleets and private consumers looking for versatile vehicles with reduced environmental impact.
“These aren’t simply existing Mitsubishi designs with batteries instead of engines,” clarifies Takahiro Yamaguchi, Chief Design Officer at Mitsubishi Motors.
“We’re developing these vehicles from the ground up to match Australian conditions and preferences, while taking advantage of the opportunities electric powertrains offer in terms of space utilization, weight distribution, and performance characteristics. Australian drivers will recognize the Mitsubishi DNA in these vehicles while experiencing something entirely new.”
Both vehicles will incorporate technology partnerships beyond the core Foxconn-Mitsubishi relationship.
Battery cells will be supplied by LG Energy Solution, while advanced driver assistance systems will utilize a combination of hardware from suppliers including Bosch and software developed by Australia’s own Baraja, a Sydney-based lidar technology company gaining international recognition for its spectrum-scan approach to autonomous driving technology.
Pricing strategy, often the make-or-break factor for electric vehicle adoption, aims to position these locally-manufactured EVs more competitively than current import options.
While specific numbers weren’t disclosed, executives suggested the compact crossover would target a starting price “significantly below AUD 55,000” – positioning it to qualify for various state and federal EV incentive programs while undercutting many comparable imported options.
Manufacturing Innovation: The Foxconn Approach
Perhaps the most technically interesting aspect of this partnership is how Foxconn plans to apply its electronics manufacturing expertise to automotive production – a field traditionally dominated by very different approaches to manufacturing and assembly.
“Foxconn brings a fundamentally different perspective to vehicle manufacturing,” explains manufacturing technology specialist Dr. Robert Zhang.
“Traditional automakers evolved from craftsman origins to mass production, with manufacturing processes developed over decades specifically for internal combustion vehicles. Foxconn approaches electric vehicles more like sophisticated electronic devices with wheels – which in many ways they are, particularly as software becomes increasingly central to vehicle functionality.”
The Geelong facility will implement Foxconn’s “Advanced Manufacturing System” (AMS), which emphasizes automation, modularity, and what the company calls “adaptive production lines” capable of producing different vehicle models on the same assembly line with minimal reconfiguration time.
This approach, refined through decades of consumer electronics manufacturing, promises greater efficiency and flexibility than traditional automotive plants typically achieve.
Central to this manufacturing philosophy is the treatment of vehicles as collections of modules rather than thousands of individual components.
Major systems – from battery packs to dashboard assemblies – are pre-assembled and tested before final vehicle integration, reducing complexity at the main assembly stage and improving quality control.
This modular approach also facilitates easier updates and potentially longer vehicle lifecycles through the replacement of specific modules rather than entire vehicles.
“We’re essentially bringing smartphone manufacturing principles to cars,” stated Jason Young, Foxconn’s Vice President of New Ventures, during a technical briefing following the main announcement.
“The traditional automotive industry talks about five to seven-year product cycles. We’re building manufacturing systems capable of implementing significant updates annually if needed, responding to consumer feedback and technological advances much more rapidly than conventional approaches.”
This manufacturing agility extends to the supply chain model as well.
Rather than the just-in-time inventory systems that have dominated automotive manufacturing for decades (and proved vulnerable during recent global disruptions), Foxconn is implementing what it calls a “resilient supply network” with strategic component stockpiling, multiple sourcing options, and greater vertical integration for critical components.
Market Impact and Industry Reactions
The announcement has sent ripples through both the Australian automotive market and the global industry.
Shares in Mitsubishi Motors rose 4.7% in Tokyo trading following the news, while Foxconn parent company Hon Hai Precision Industry saw a 3.2% increase on the Taiwan Stock Exchange, indicating positive investor sentiment toward the partnership.
Reactions from competitors have been mixed.
Traditional automakers with established EV programs have publicly welcomed the development as “validation of the electric future,” though industry insiders suggest considerable concern about Foxconn’s entry potentially accelerating margin pressure and manufacturing disruption across the sector.
“This partnership represents exactly the kind of unconventional thinking that keeps me up at night,” admitted one senior executive from a European automaker, speaking on condition of anonymity.
“If Foxconn can successfully transfer its electronics manufacturing efficiency to automotive production, and if that translates to meaningful cost advantages, it creates a new competitive benchmark that traditional manufacturers will struggle to match without painful restructuring.”
Australian auto dealers have responded more enthusiastically, particularly those within the Mitsubishi network who anticipate increased consumer interest and potentially higher margins on locally-manufactured vehicles compared to imports.
The Mitsubishi Dealers Association of Australia released a statement calling the partnership “a game-changing opportunity to offer uniquely Australian-focused electric vehicles with local production advantages.”
For Australian consumers, the development promises greater choice in the electric vehicle market and potentially more affordable options.
The country’s EV adoption has lagged behind many comparable economies, with electric vehicles representing just 3.8% of new car sales in 2024 compared to double-digit percentages in Europe, China, and parts of the United States.
Price barriers have frequently been cited as a primary obstacle to wider adoption, an issue this partnership explicitly aims to address.
Supply Chain Implications and Local Content
A particularly noteworthy element of the Foxconn-Mitsubishi partnership is its potential impact on Australia’s automotive supply chain, which has contracted significantly since the departure of major manufacturers but never completely disappeared.
The agreement includes commitments to achieve 35% local content (by value) at launch, increasing to 50% within five years of production – targets that would necessitate substantial engagement with Australian parts manufacturers and materials suppliers.
“This creates a lifeline for dozens of businesses that have been surviving on aftermarket parts production and limited export opportunities since the end of large-scale auto manufacturing in Australia,” explains Richard Torres, Executive Director of the Australian Automotive Components Association.
“Many of these companies have been diversifying into other industries, but automotive components remain their core expertise. This partnership creates a new path forward that leverages existing capabilities while requiring evolution toward electric vehicle technologies.”
Specific opportunities for local suppliers include interior components, lighting systems, chassis elements, and thermal management systems.
Battery cells will initially be imported from LG Energy Solution’s facilities in South Korea, though the agreement includes provisions for potential future cell manufacturing in Australia if volume justifies the investment.
The partnership has also sparked interest in Australia’s mining sector, given the country’s substantial reserves of critical minerals essential for electric vehicle production, including lithium, cobalt, and rare earth elements.
Several mining companies have already initiated discussions about potential supply agreements, seeing an opportunity to move beyond raw material exports toward higher-value refined products specifically for local EV manufacturing.
“Australia has long been in the paradoxical position of possessing abundant resources for electric vehicle components while having limited local manufacturing of those vehicles,” notes resources analyst Sarah Davidson.
“This partnership creates the potential for more complete value chains within the country, from mining through materials processing to actual vehicle production. That vertical integration opportunity represents a significant economic development beyond the direct manufacturing benefits.”
Regulatory Landscape and Government Support
The timing of this partnership coincides with evolving Australian regulatory policies around vehicle emissions and electric mobility.
The federal government recently announced more stringent fuel efficiency standards set to phase in between 2025 and 2030, creating regulatory pressure that favors electric vehicle adoption.
Additionally, various state governments have implemented or expanded incentive programs for EV purchases, including rebates, registration discounts, and preferential access to transit lanes.
“The regulatory environment has reached a tipping point that makes this investment commercially viable,” explains policy analyst Michael Williams.
“Five years ago, this partnership probably wouldn’t have happened due to insufficient market drivers. Today, the combination of tightening emissions standards, government incentives, and changing consumer preferences creates a much more favorable landscape for local EV manufacturing.”
The federal government’s support extends beyond regulatory frameworks to direct financial incentives through its recently expanded Electric Vehicle Manufacturing Incentive Program.
While specific amounts remain confidential due to commercial sensitivities, industry sources suggest the package includes tax concessions, grants for manufacturing equipment, subsidized worker training programs, and potential preferential treatment in government fleet procurement.
State support, particularly from Victoria where the manufacturing facility will be located, reportedly includes land access arrangements, infrastructure development, and integration with renewable energy projects to power manufacturing operations.
The Victorian government has committed to ensuring the facility has access to sufficient renewable energy to make legitimate claims about low-carbon manufacturing processes, addressing potential criticisms about the environmental impact of electric vehicle production.
Challenges and Uncertainties Ahead
Despite the optimistic announcement and positive market reaction, significant challenges remain before the first Australian-made Mitsubishi electric vehicles reach consumers.
Manufacturing experts note that Foxconn’s experience, while extensive in electronics, remains relatively limited in the more complex world of complete vehicle assembly.
The company’s other automotive ventures, including partnerships with Fisker in the United States and Yulon in Taiwan, have experienced delays and production challenges that highlight the difficulty of transferring manufacturing expertise across industries.
“Building cars is fundamentally different from assembling smartphones or laptops,” cautions manufacturing consultant Elizabeth Chen.
“The regulatory requirements alone are vastly more complex, not to mention the different scale of components, the safety-critical nature of automotive systems, and consumer expectations for quality that extend across decades rather than years. Foxconn has the resources and technical capability to overcome these challenges, but the learning curve shouldn’t be underestimated.”
Supply chain development presents another significant hurdle.
While Australia retains some automotive component manufacturing capability, the transition to electric vehicle components requires substantial retooling, workforce retraining, and new quality certification processes.
Developing this supply chain ecosystem to meet production timelines will require coordinated effort across dozens of companies, many of which have limited experience with electric vehicle components.
Market acceptance represents a third category of challenge.
Australian consumers have historically been conservative in their vehicle choices, with traditional internal combustion SUVs and trucks dominating sales charts.
While electric vehicle interest is growing, particularly in urban areas, convincing mainstream buyers to make the switch requires overcoming established perceptions about range limitations, charging infrastructure, and resale value – areas where Mitsubishi and Foxconn will need to provide compelling answers.
“Success will ultimately depend on delivering vehicles that Australians actually want to buy, not just vehicles that are technically impressive or environmentally responsible,” notes consumer behavior researcher Dr. Amanda Peterson.
“That means addressing the practical concerns that have limited EV adoption so far, from driving range to charging convenience to total cost of ownership. Getting the product right for Australian conditions and preferences will be as important as the manufacturing innovation behind it.”
The Broader Context: Global Industry Transformation
This partnership between Foxconn and Mitsubishi exists within a broader context of automotive industry transformation, where traditional boundaries between technology companies and automakers continue to blur.
Similar arrangements have emerged globally, with Sony partnering with Honda, Foxconn working with Fisker in the United States, and various Chinese technology companies entering automotive manufacturing either independently or through partnerships with established brands.
“What we’re witnessing is the most significant restructuring of automotive manufacturing relationships since the industry’s consolidation in the mid-20th century,” explains automotive historian Professor James Martinez.
“The electrification transition creates natural openings for new manufacturing approaches and partnerships because the core technologies and manufacturing processes are fundamentally different from internal combustion. Companies that dominated the previous era won’t necessarily maintain that dominance in the electric age.”
This restructuring extends beyond manufacturing to the entire automotive value chain.
Software development has become increasingly central to vehicle functionality, creating opportunities for technology companies to contribute critical components of the user experience.
Charging infrastructure represents another new value chain element largely separate from traditional automotive competencies.
The integration of vehicles with broader energy systems, from home solar installations to grid services, creates additional partnership opportunities beyond traditional industry boundaries.
“The companies that succeed in this transition period will be those that effectively integrate capabilities across traditionally separate domains,” suggests strategic consultant Michael Thompson.
“Neither traditional automakers nor technology companies typically possess all the necessary elements for success in the emerging electric ecosystem. Strategic partnerships like this Foxconn-Mitsubishi arrangement allow both companies to leverage their core strengths while addressing their limitations through collaboration.”
Implications for Australian Manufacturing
Beyond its significance for the automotive industry specifically, this partnership carries broader implications for Australian manufacturing, which has experienced declining employment and output in traditional sectors over recent decades while struggling to establish strong positions in emerging industries.
“This investment represents exactly the kind of advanced manufacturing that can thrive in Australia’s high-wage economy,” argues manufacturing policy expert Dr. Jennifer Roberts.
“It combines automation and advanced technology with specialized human skills, creating high-value products that justify the cost structure. The focus on specifically Australian-adapted vehicles also leverages local knowledge and proximity to end users as competitive advantages that offshore manufacturers struggle to match.”
The timing aligns with broader government efforts to revitalize Australian manufacturing through its Modern Manufacturing Strategy, which identifies clean energy and transportation among priority sectors for development.
Success in this venture could provide a template for similar partnerships in adjacent industries, from renewable energy equipment to specialized machinery for mining and agriculture – sectors where Australia has natural advantages but limited domestic manufacturing capability.
The knowledge transfer aspects of the partnership hold particular promise.
The agreement includes provisions for workforce development programs in collaboration with TAFE Victoria and several universities, creating pathways for developing expertise in electric vehicle technologies that could support further industry growth beyond this specific venture.
“The skills developed through this partnership – from advanced electronics integration to digital manufacturing processes – have applications far beyond automotive manufacturing,” notes education specialist William Davis.
“They represent foundational capabilities for a range of high-value manufacturing sectors that could thrive in Australia with the right skills pipeline and investment environment. The catalytic potential of this partnership for broader manufacturing revival shouldn’t be underestimated.”
Looking Ahead: Future Expansion Possibilities
While the initial announcement focuses specifically on Australian manufacturing for the Australian market, both companies have acknowledged potential for broader expansion if the partnership proves successful.
Possibilities include exporting Australian-made vehicles to other right-hand-drive markets in the Asia-Pacific region, expanding the local model lineup beyond the initial two vehicles, and potentially increasing production capacity beyond the initial 30,000-unit annual target.
“This partnership is structured to start with manageable scale and complexity while establishing foundations for potential growth,” explains Mitsubishi Australia CEO Mark Davidson.
“Success in the Australian market would naturally create opportunities to leverage the same manufacturing capabilities for export markets with similar requirements, particularly in Southeast Asia and parts of Oceania. The modular manufacturing approach specifically enables this kind of scalable expansion.”
Foxconn executives have similarly indicated that success in Australia could lead to expanded manufacturing presence in the country.
“We see Australia as an ideal environment to demonstrate our automotive manufacturing capabilities in a developed economy with high standards and expectations,” stated Jason Young, VP of New Ventures.
“The knowledge and experience gained here will inform our global EV manufacturing strategy, while potentially creating opportunities to manufacture additional products for both automotive and adjacent markets in this facility.”
Industry observers suggest that battery manufacturing represents the most logical expansion pathway if initial vehicle production proves successful.
The combination of Australia’s abundant lithium and other battery material resources with established manufacturing infrastructure could create compelling economics for localized battery production as volumes increase – a development that would significantly increase the economic impact and employment potential of the partnership.
A Watershed Moment for Multiple Industries
The Foxconn-Mitsubishi partnership for Australian electric vehicle manufacturing represents a watershed moment that transcends any single industry category.
It brings together automotive heritage with electronics manufacturing expertise, addresses Australia’s particular mobility needs and market characteristics, and potentially revitalizes a manufacturing sector that many had written off following the departure of traditional automakers.
Success is far from guaranteed, with significant challenges in manufacturing execution, supply chain development, and market acceptance still to be overcome.
However, the combination of industrial capabilities, market timing, regulatory support, and financial resources assembled in this partnership creates a credible foundation for bringing new electric vehicles to Australian consumers through a manufacturing approach not previously seen in the country.
For Australian consumers, the prospect of electric vehicles specifically designed for local conditions, manufactured locally, and priced more competitively than imported alternatives offers an intriguing new option in the transition toward electrified transportation.
For the global automotive industry, this partnership provides another data point in the ongoing reconfiguration of manufacturing relationships as electrification disrupts century-old industrial structures.
“Sometimes the most significant industry transformations begin in unexpected places,” reflects industry analyst Sophia Chen.
“Australia might not be the first market that comes to mind for automotive manufacturing innovation, but the combination of circumstances here – from government policy to market characteristics to available manufacturing capacity – creates a unique opportunity for this partnership to demonstrate a new model for how electric vehicles can be produced. The industry worldwide will be watching closely.”
As development proceeds toward the targeted 2026 production start, both companies have committed to regular updates on facility construction, vehicle development, and employment opportunities.
The next major milestone will be the public unveiling of production-intent vehicle designs, scheduled for the Australian International Motor Show in April 2025.