Mitsubishi Electric has agreed to sell 50% of Mitsubishi Electric Mobility, the subsidiary that runs its automotive equipment business, to Lin Yin International Investment Co., Ltd., the investment management company of Hon Hai Precision Industry (Foxconn). The presentation puts the stake at ¥115bn. After the deal, the unit becomes a 50-50 joint venture between Lin Yin and Mitsubishi Electric.
What the deal covers
The binding share transfer agreement was signed on 16 October 2026, the same day as the company's formal corporate decision on the transaction. Mitsubishi Electric also decided to move the rights and obligations it holds for the auto business into Mitsubishi Electric Mobility through an absorption-type company split. Rights and obligations held by group companies in Japan and abroad are to go to the unit or its subsidiaries.
The unit is wholly owned by Mitsubishi Electric as of October 2026, has about 6,400 employees and reported standalone revenue of ¥657.6bn for the last fiscal year. Counting the wider auto-equipment business on a consolidated basis, revenue was ¥875.6bn.
The two sides signed a memorandum on AI data-centre cooperation on 6 November 2025, and a second on 24 April 2026 to study joint operation of the auto unit.
| Step | Timing | Status |
|---|---|---|
| Corporate decision and share transfer agreement signed | 16 October 2026 | Done |
| Company-split agreement | First half of fiscal 2027 | Planned |
| Company split effective; 50% share transfer executed | October 2027 | Planned |
| Consolidated forecast, year to March 2027 | 30 October 2026 | Publication planned |
The accounting hit
Mitsubishi Electric expects to book an impairment loss of about ¥100bn under other income and expenses in its consolidated results for the year to March 2027. Its consolidated accounts follow IFRS.
In its standalone accounts for the year to March 2028, it expects a gain of about ¥80bn on the sale of affiliate shares, booked as an extraordinary gain. The two items sit in different sets of accounts and different years, and the company does not present them as offsetting.
The company says it is still reviewing its consolidated forecast for the year to March 2027, including factors other than the deal. It plans to publish that consolidated forecast on 30 October 2026.
The strategic case
Mitsubishi Electric argues that a Hon Hai partnership lets it share the heavy upfront cost of electric and autonomous vehicles while keeping the existing supply chain intact. Hon Hai names three contribution areas for the unit: autonomous driving, the electric powertrain and in-vehicle intelligence. The target is revenue of ¥1tn or more by fiscal 2030, up from ¥875.6bn on the consolidated measure.
The presentation lists no regulatory approvals or closing conditions. The company schedules the company-split agreement for the first half of fiscal 2027, and the split's effective date and the share transfer for October 2027, both planned.
A separate bond filing
On 19 October 2026, Mitsubishi Electric filed an amended shelf registration to add the extraordinary report as a reference document. The registration covers up to ¥300bn of bonds, took effect on 8 July 2025 and runs to 7 July 2027. The amendment records no new issue, and its effectiveness was suspended only for 19 October 2026.