TOKYO - Japan’s auto industry, already facing mounting pressure, is preparing for another major challenge in 2026 as Taiwan-based manufacturing giant Foxconn steps up its push into the Japanese market. Following its earlier focus on Chinese electric vehicle makers, the company is now turning its attention to Japan, raising questions over whether it will become a partner or a rival to domestic automakers.
This report follows an earlier segment on BYD and focuses on Foxconn Technology Group, led in its EV strategy by former Nissan executive Jun Seki. Under Seki’s leadership, Foxconn has been developing electric vehicles after closely analyzing Japanese carmakers such as Toyota and Nissan. The company has already begun rolling out electric buses and taxis, and is now eyeing the passenger car market as its next target.
Coverage of Foxconn’s recent technology showcase, Foxconn Tech Day, revealed that cooperation with Japanese firms is steadily advancing. The event highlighted new vehicle models and underscored Foxconn’s growing ambitions in mobility. The question now is whether the Taiwanese electronics giant will become a partner, a competitor, or both for Japan’s auto industry.
Seki, once considered a candidate for Nissan’s top post, left the company after internal power struggles and later joined Foxconn to lead its electric vehicle business. His move followed a brief and turbulent tenure at a Japanese motor manufacturer, after which he was recruited by Foxconn to spearhead its automotive expansion. Since then, his presence has been increasingly felt in Japan’s auto sector.
In December 2024, reports surfaced that Foxconn had approached Renault, Nissan’s largest shareholder, about acquiring its stake in the Japanese automaker. The move reportedly accelerated talks between Nissan and Honda over a possible management integration, driven in part by concerns over foreign acquisition. Although those talks ultimately collapsed, Foxconn’s behind-the-scenes maneuvering has continued to influence Japan’s auto industry.
Financially, Foxconn remains a formidable force. In the first half of 2025, the company posted revenue of approximately 17 trillion yen, with both operating and net profits showing double-digit growth from a year earlier. Its largest revenue driver remains smartphone and electronics manufacturing, including iPhone assembly, but the fastest growth has come from AI server production, which has expanded by roughly 50 percent year-on-year.
Electric vehicles currently fall under Foxconn’s machinery and connector division, where sales are still smaller than its core businesses but growing steadily. The company has also been expanding its presence in North America and Europe, with the United States emerging as a key market due to surging demand for AI-related infrastructure.
Industry analysts note that Foxconn’s strength lies in its horizontal manufacturing model, in contrast to Japan’s traditionally vertically integrated approach. While Japanese firms tend to design, manufacture, and sell products in-house, Foxconn specializes in contract manufacturing, assembling products designed by others. This model has allowed it to dominate global electronics production, but its compatibility with Japan’s automotive culture remains uncertain.
Still, the company has shown an ability to restructure struggling businesses, as seen in its acquisition of Sharp. Although cost-cutting and operational reform helped stabilize the company, critics argue that Foxconn lacks the brand-building and creative strengths traditionally valued by Japanese manufacturers.
At the same time, Japan’s auto industry is facing structural change. As vehicles become increasingly software-driven, with autonomous driving and AI integration at their core, the traditional model of in-house development is under strain. Experts say this shift could open the door for companies like Foxconn, which excel at modular production and large-scale manufacturing.
During a November technology exhibition, Foxconn unveiled several new EV models, including a compact electric bus and a new passenger vehicle known as Model A. The company confirmed plans to supply EV buses to Mitsubishi Fuso Truck and Bus, and indicated that passenger cars could follow. The Model A, priced at around 3 million yen, is designed to be adaptable for taxis, commercial use, and logistics applications.
Foxconn executives said they aim to produce vehicles in Japan in partnership with local manufacturers, though the option of building their own production lines remains under consideration. The company has already constructed flexible manufacturing facilities overseas and claims similar plants could be replicated in Japan at competitive cost levels.
Looking ahead, Foxconn is also targeting autonomous driving. The company is working with Nvidia and other partners on Level 4 autonomous technology and envisions integrating self-driving systems into future vehicle lineups, including robotaxis.
As Japan’s population declines and car ownership patterns shift, industry observers say the role of vehicles is evolving from simple transportation to mobile living spaces and logistics platforms. In that context, Foxconn’s entry into Japan could have far-reaching implications for employment, industrial structure, and technological leadership.
Source: テレ東BIZ
