In a surprising move that signals the evolving landscape of electric vehicle manufacturing, Mitsubishi Motors has announced a groundbreaking partnership with Foxconn, the Taiwanese manufacturing giant best known for assembling Apple’s iPhones.
This collaboration aims to revitalize Mitsubishi’s electric vehicle lineup specifically for the Australian market, where EV adoption has lagged behind other developed nations despite growing environmental concerns.
The joint venture, unveiled at a press conference in Sydney yesterday, represents a strategic pivot for both companies. For Mitsubishi, it’s an opportunity to leverage Foxconn’s technological expertise and manufacturing efficiency.
For Foxconn, it’s another significant step in its ambitious diversification beyond electronics assembly into the burgeoning electric vehicle sector.
“This partnership combines Mitsubishi’s legacy of reliability and understanding of Australian driving conditions with Foxconn’s unparalleled expertise in high-precision manufacturing and supply chain management,” said Takao Kato, CEO of Mitsubishi Motors.
“Together, we’re creating vehicles that will specifically address the unique challenges of the Australian market.”
A Partnership Born of Necessity
The collaboration comes at a critical juncture for both companies. Mitsubishi has struggled to maintain its competitive edge in the rapidly evolving EV market, particularly in Australia where its once-popular Outlander PHEV has faced increasing competition from newer models.
Meanwhile, Foxconn has been actively seeking to reduce its dependence on Apple, which currently accounts for approximately half of its revenue.
Industry analysts see the move as strategically sound. “Foxconn brings expertise in electronics, batteries, and efficient manufacturing processes—all crucial components for modern EVs,” explained Dr. Sarah Chen, automotive industry analyst at Deakin University.
“Mitsubishi contributes its automotive engineering experience and established dealer network in Australia. It’s potentially a winning combination.”
The partnership also addresses one of Australia’s most significant barriers to EV adoption: range anxiety.
With vast distances between major population centers and limited charging infrastructure outside urban areas, many Australian consumers have been hesitant to embrace fully electric vehicles.
The Australian Market Challenge
Australia presents unique challenges for electric vehicle manufacturers.
Despite having one of the highest per capita carbon footprints globally, EV adoption rates have remained stubbornly low, accounting for just 3.8% of new vehicle sales in 2023—well behind comparable markets like the UK (14.6%) and New Zealand (9.5%).
Several factors have contributed to this lag: limited model availability, high upfront costs, concerns about range and charging infrastructure, and until recently, the absence of cohesive government incentives.
However, with state governments increasingly introducing rebates and the federal government committing to a National Electric Vehicle Strategy, the market appears poised for growth.
“Australia is at an inflection point for EV adoption,” said Federal Minister for Climate Change and Energy Chris Bowen. “Partnerships like this one between Mitsubishi and Foxconn demonstrate growing confidence in our market’s potential.”
The collaboration aims to address specifically Australian challenges through vehicles designed with longer range capabilities, robust construction for varied terrain, and technology that can better integrate with Australia’s developing charging network.
The Vehicles: Australian-Specific Design
The first vehicle from this partnership, tentatively named the Mitsubishi E-Terrain, is slated for release in mid-2026.
It features a rugged SUV design with a claimed range of over 600 kilometers on a single charge—significantly higher than most current market offerings.
Key features include:
- A dual-motor all-wheel-drive system designed for Australian off-road conditions
- Advanced heat management systems to maintain battery efficiency in extreme temperatures
- Solar-augmented charging capability through roof-mounted panels
- Vehicle-to-grid technology allowing the car to function as a home battery during outages
- A water-fording depth of 600mm, addressing concerns about EV resilience in Australia’s flood-prone regions
“We’ve essentially reimagined what an EV for Australia should be,” said James Tung, Foxconn’s chief vehicle architect.
“This isn’t just an adapted global platform—it’s been conceived from the ground up for Australian conditions and driving patterns.”
The partnership will also introduce an electric utility vehicle—a critical segment in the Australian market where utes (pickup trucks) remain extraordinarily popular.
This model aims to compete directly with emerging electric utes from manufacturers like Rivian and Tesla.
Manufacturing and Supply Chain Innovation
Perhaps the most revolutionary aspect of this partnership is its manufacturing approach.
Rather than establishing a traditional automotive plant, the companies will implement Foxconn’s “manufacturing as a service” model, creating what they call “distributed manufacturing cells” across Australia.
These smaller, more flexible production facilities will be located in multiple states, reducing transportation costs and creating local jobs.
The first facility is already under construction in Geelong, Victoria, at the site of the former Ford manufacturing plant, with production scheduled to begin in early 2026.
“This distributed approach allows us to be more responsive to market demands and reduces the carbon footprint associated with vehicle distribution,” explained Dr. Emily Wong, chief operations officer for the joint venture.
“It’s also more resilient to supply chain disruptions—something both companies have learned the importance of in recent years.”
The manufacturing approach will utilize advanced robotics and AI-driven quality control systems pioneered by Foxconn in its electronics manufacturing. These technologies promise to deliver automotive production with unprecedented precision and efficiency.
Battery Technology and Sustainability Focus
Central to the new vehicles is a next-generation battery technology developed collaboratively between Mitsubishi’s R&D division and Foxconn’s battery subsidiary.
The battery packs promise 30% higher energy density than current market leaders, faster charging capabilities, and significantly improved cycle life.
Notably, the batteries are designed for easy replacement and recycling, addressing growing concerns about the environmental impact of EV battery disposal.
The companies have committed to establishing a comprehensive battery recycling program alongside their vehicle production.
“We’re thinking beyond just the vehicle’s operational lifespan,” said Dr. Akira Tanaka, Mitsubishi’s chief sustainability officer. “Our approach integrates circular economy principles from design through to end-of-life management.”
The sustainability focus extends to manufacturing processes as well. The production facilities will be powered largely by renewable energy, with the Geelong site featuring an extensive solar installation and battery storage system.
Market Implications and Consumer Response
Early consumer response to the announcement has been cautiously positive.
A survey conducted by the Australian Electric Vehicle Association following the announcement found that 68% of respondents would consider the new Mitsubishi-Foxconn vehicles for their next purchase, citing the Australian-specific design and improved range as key factors.
Pricing will be crucial to the venture’s success. The companies have indicated that the E-Terrain will be priced competitively with premium ICE (internal combustion engine) SUVs rather than positioning it as a luxury offering—a strategy aimed at accelerating mainstream adoption.
“We’re targeting a price point around $55,000 to $65,000 AUD for the base model E-Terrain,” said Michael Taylor, Mitsubishi Australia’s managing director. “This positions us in the heart of the family SUV market, making the switch to electric more accessible for everyday Australians.”
The partnership has also prompted responses from competitors. Toyota Australia, which has been relatively conservative in its EV strategy, announced an acceleration of its electric vehicle roadmap the day after the Mitsubishi-Foxconn announcement.
Broader Industry Trends
The Mitsubishi-Foxconn partnership reflects several emerging trends in the automotive industry:
- Technology companies increasingly entering the automotive space, bringing manufacturing innovations and digital integration expertise
- Regionalization of vehicle design and manufacturing to address specific market needs
- New business models that challenge traditional automotive production paradigms
- The growing importance of sustainability beyond just vehicle emissions
“What we’re seeing here could represent the future of automotive manufacturing,” said Professor David Wilson, head of Automotive Engineering at RMIT. “More distributed, more flexible, more responsive to local needs, and fundamentally more sustainable.”
Challenges and Uncertainties
Despite the optimism, significant challenges remain. The timeline is ambitious by automotive standards, particularly for what effectively amounts to a start-up operation.
Questions also remain about service networks, charging infrastructure development, and the companies’ ability to scale production quickly if demand exceeds expectations.
Regulatory approval processes for new vehicle manufacturers in Australia can be lengthy, though preliminary discussions with relevant authorities have already begun, according to company representatives.
Perhaps the greatest uncertainty lies in consumer acceptance.
While Australians have shown increasing interest in electric vehicles, convincing them to choose a model from an unproven partnership over established players like Tesla or traditional manufacturers like Hyundai and Kia will require building considerable trust.
As Australia moves toward its climate commitments, transportation represents a critical sector for emissions reduction.
The Mitsubishi-Foxconn partnership represents an innovative approach to addressing the specific needs of the Australian market while potentially creating a new model for automotive manufacturing.
“This isn’t just about selling cars,” concluded Takao Kato. “It’s about creating a sustainable transportation ecosystem specifically designed for Australia’s unique conditions and needs. We believe this approach—combining global expertise with local focus—represents the future of mobility.”
Whether this bold experiment succeeds remains to be seen, but it undoubtedly signals a new chapter in Australia’s automotive landscape—one where technology companies and traditional manufacturers increasingly find common ground in the electric future.
