Mitsubishi Electric and Hon Hai Precision Industry reached a basic agreement to jointly operate the automotive-equipment business. The investment ratio will be 50:50, with a target of ¥1 trillion in sales in fiscal 2030.
Mitsubishi Electric agreed to accept 50% investments each from Hon Hai Precision Industry in Mitsubishi Electric Mobility. Following the agreement, a press conference was held at Mitsubishi Electric's head office on 19 October, attended by executives from both companies.
Going forward, the companies will jointly operate the business centred on Mitsubishi Electric Mobility, with Foxconn's investment-management company Lin Yin International Investment investing 50%. They disclosed a plan to increase sales to ¥1 trillion in fiscal 2030.
Mitsubishi Electric Mobility identified three core business areas: electric powertrains, autonomous driving and in-vehicle intelligence. The company said it aims to create new mobility value by combining the two companies' technologies and scale.
The Mitsubishi brand will continue to be used for the time being, while future brand strategy remains under consideration. Mitsubishi Electric's CSO Seki (関) said there was a possibility of considering an IPO once sales exceed ¥1 trillion in 2030. The company also expects to record a partial consolidated impairment loss in the fiscal year ending March 2027.