Mitsubishi Electric will jointly run its auto unit with Foxconn, which will invest ¥115 billion for half of the business in October 2027. It expects about ¥100 billion in impairment losses for the year ending March 2027, with its earnings outlook due Oct. 30.
Key facts
Lin Yin International Investment, an investment management company in the Foxconn group, will invest in Mitsubishi Electric Mobility, which runs Mitsubishi Electric's automotive equipment business. After the share transfer, Mitsubishi Electric and Lin Yin will each hold 50% of the joint venture.
| Item | Details |
|---|---|
| Investors | Lin Yin International Investment, Mitsubishi Electric |
| Shares to be transferred | 50% of Mitsubishi Electric Mobility |
| Agreement signed | Oct. 16, 2026 |
| Company split agreement | Planned for the first half of fiscal 2027 |
| Company split and share transfer | Planned for October 2027 |
The companies signed a memorandum of understanding in November 2025 to work together on solutions for AI data centers, then began considering an expansion into automotive equipment in April 2026. They signed a final agreement on joint operations on Oct. 16, 2026, bringing the collaboration into concrete form.
The partnership aims to combine Foxconn's EV development and production base with Mitsubishi Electric Mobility's vehicle control technology to strengthen their EV and autonomous driving businesses. Mitsubishi Electric Mobility says it will contribute to the development of Foxconn's EV platform.
Foxconn is centered on electronics manufacturing services, or EMS, and has identified EVs as a priority area. Mitsubishi Electric Mobility, meanwhile, brings vehicle control technologies and a mass-production base developed in its automotive equipment business. The companies plan to complement each other's strengths and address autonomous driving and software-defined vehicles as the industry moves beyond electrification.
Mitsubishi Electric expects to book about ¥100 billion in impairment losses in its consolidated results for the year ending March 2027 in connection with the transaction. The company is reviewing its consolidated earnings forecast, including other factors, and plans to announce it on Oct. 30, 2026.
Mitsubishi Electric Mobility said it aims to build on the earnings power of its existing businesses and grow its core operations into a company with sales of around ¥1 trillion. The materials did not specify when it expects to reach that target.
The impairment will weigh on net income, making the earnings forecast due Oct. 30 important for investors assessing the impact of the charge on profit expectations. The partnership's business benefits will become clearer through future orders, product rollouts and improved margins.
Mitsubishi Electric Mobility was established in 2024 when the Mitsubishi Electric division responsible for its automotive equipment business was spun off. It has about 6,400 employees. The joint operation will change the ownership structure, but the materials do not specify changes to employment or locations.
The company aims to provide a high-quality, Japan-developed EV platform and contribute to the country's industrial base and the sustainable growth of its auto industry. Whether domestic automotive technology can be brought into international EV development will be a key test of the partnership.
Analyst take
The investment and joint operation create a framework linking Foxconn's EV platform with Mitsubishi Electric Mobility's vehicle control technology. But the roughly ¥100 billion impairment will weigh on short-term results, and it may take time for the collaboration to show through in profits. The key question is whether the combined technologies lead to mass-production programs and recurring revenue. Investors will first look to the earnings outlook due Oct. 30, followed by concrete product and business developments.
