Foxconn and Mitsubishi Fuso to jointly manufacture EV buses in Japan - Nikkei Asia

Taiwanese electronics manufacturer Hon Hai Precision Industry, known as Foxconn, and Japan's Mitsubishi Fuso Truck and Bus Corporation have formalized a strategic joint venture dedicated to electric bus manufacturing in Japan. The partnership, announced January 22, 2026, establishes a new entity that will utilize Mitsubishi Fuso's existing Japanese production facilities to develop and assemble battery-electric buses for domestic and international markets.

The collaboration accelerates Japan's electrification roadmap for commercial transportation. Government mandates require all new buses sold domestically to be electric by 2035, creating immediate market pressure. Mitsubishi Fuso brings established manufacturing infrastructure and commercial vehicle expertise, having launched its first electric truck series in 2022. Foxconn contributes electronics integration capabilities and battery supply chain access through its electric vehicle platform subsidiary Foxtron. Neither company disclosed specific investment figures, but production capacity targets indicate potential for several thousand units annually by 2028.

Market dynamics underscore the timing. Japan's bus electrification lags behind China and Europe, with electric models comprising less than 2% of the current fleet according to Ministry of Land, Infrastructure, Transport and Tourism data. Domestic manufacturers face pressure from BYD's expanding Japanese commercial vehicle presence, which secured 17% market share in 2025. The Foxconn-Mitsubishi venture enables faster time-to-market than independent development while bypassing import tariffs on foreign-built vehicles.

Strategically, the deal advances Foxconn's vertical integration in transportation electrification. Since 2021, the contract manufacturer has secured EV partnerships with automakers including Fisker, Lordstown Motors, and Monarch Tractor. This marks Foxconn's first dedicated commercial vehicle collaboration in Japan, positioning it to capture value from both component supply and finished vehicle sales. For Mitsubishi Fuso, owned by Daimler Truck, the collaboration mitigates R&D costs amid tightening EU and Japanese emissions regulations requiring 30% CO2 reductions for heavy vehicles by 2030.

The joint venture signals consolidation in the specialized electric bus segment, where development costs can exceed $200 million per platform. Production will likely focus on Mitsubishi Fuso's existing bus chassis adapted with Foxconn's electronic control systems and modular battery packs. Initial models are expected to target municipal transit authorities, with per-unit pricing projected between $350,000-$450,000—approximately 15% below current European imports. Deployment begins with Japanese routes in 2027, followed by Southeast Asian markets where both companies maintain distribution networks.

This partnership reflects broader industry realignment as commercial vehicle manufacturers seek capital-efficient paths to electrification. While traditional automakers develop proprietary platforms, collaborations like this leverage manufacturing specialization across corporate boundaries. The arrangement provides Mitsubishi Fuso immediate production scalability while giving Foxconn a validated pathway into Japan's $1.2 billion annual bus market.