Hon Hai contracted to make new EV model for Mitsubishi: Source

Taipei, April 21 (CNA) Taiwanese manufacturing giant Hon Hai Precision Industry Co. has entered into an agreement to produce a new electric vehicle model for Mitsubishi Motors Corp. of Japan, a source within the industry told CNA on Sunday.

Hon Hai, also known as Foxconn in the global market, will start initial production of the new EV model at a plant in Miaoli County owned by one of its partners Yulon Motor, said the source, who spoke on condition of anonymity.

The new model will be a revised version of the Model B prototype unveiled by Hon Hai in 2022, said the source, who did not give a date for the expected start of production.

The new urban cars are scheduled to hit markets in Australia and New Zealand in 2026, the source said, adding that they might be marketed in Taiwan and Japan at a later date.

Hon Hai Chairman Young Liu (劉揚偉) is in charge of the company's EV development, while its chief strategy officer (CSO) Jun Seki, who worked at Nissan Motor for 33 years, handles the relevant matters in Japan, the source said.

Hon Hai declined to comment on the reported partnership with Mitsubishi Motors.

At an investors conference in March, Hon Hai said it was planning to sign contract design and manufacturing services (CDMS) agreements with Japanese clients, under its EV development business model.

Foxtron Inc. -- a joint venture between Hon Hai, Yulon Motor, and Yulon's subsidiary Luxgen -- later this year will unveil a new EV model coded n5 and also based on the Model B, the source told CNA Sunday.

The new n5 EV is being built at Yulon Motor's plant in Miaoli's Sanyi Township, according to the source.

Meanwhile, demand has been growing steadily for the n7 EV model, which is based on Hon Hai's SUV Model C design, the source said, adding that deliveries for the first three months of this year reached 1,120 units, while the total for 2024 was 7,121 units.

According to Hon Hai, EVs based on its Model C design are scheduled to start mass production in North America in the fourth quarter of this year.

Hon Hai, known primarily as a contract assembler of iPhones, has been making significant efforts to diversify its portfolio, using a "3 plus 3" strategy to expand into integrated hardware and software.

The initiative covers three emerging industries -- EVs, robots, and digital health care -- which the company said it is developing via artificial intelligence, semiconductor, and communications technologies, with EVs as the core business.