Core Viewpoint - Foxconn and Mitsubishi Fuso will establish a joint venture to produce Foxconn's EV buses in Japan, aiming to accelerate the adoption of EVs in the country, which has lagged behind in the EV and autonomous driving sectors due to increasing competition from Chinese and American companies [2][4]. Group 1: Joint Venture Details - The joint venture will be equally funded by Foxconn and Mitsubishi Fuso, with plans to establish the new company in the second half of 2026 [4]. - Production will take place at Mitsubishi Fuso's only domestic bus manufacturing facility in Toyama, which will also handle the development and production of existing diesel buses [4]. - The goal is to secure orders for the EV bus "Model T" by 2027 and expand the product line to include the EV microbus "Model U" [4]. Group 2: Industry Context - The automotive industry is a core sector in Japan, contributing approximately 10% to the country's GDP and supporting employment [11]. - Japanese automakers are facing challenges in maintaining competitiveness, particularly in the EV and autonomous driving markets, as foreign companies increasingly take on roles in industry restructuring [5][8]. - The introduction of high tariffs and protectionist policies in the U.S. has altered the operational environment for Japanese automakers, making local production more critical [8]. Group 3: Market Dynamics - The EV bus market in Japan is currently dominated by BYD, which holds the largest market share, while the overall penetration of EV buses remains below 1% of the total bus fleet [12]. - The Japanese Bus Association aims to introduce 10,000 EV buses by 2030, a significant increase from 2024 levels, indicating substantial growth potential in the market [12]. - Despite the high costs associated with EV buses, which are over 50% more expensive than diesel counterparts, the fixed routes and charging convenience make them suitable for public transport systems [12].