Foxconn has clinched a groundbreaking agreement to manufacture electric vehicles (EVs) for Mitsubishi Motors, marking the first significant milestone for its EV contract manufacturing business. According to sources, Foxconn will produce these vehicles for Mitsubishi Motors in Taiwan, with the initial batch destined for sale in Australia and New Zealand. This strategic move aligns with Foxconn's ambitious expansion into AI servers and electric vehicles, aimed at diversifying away from its heavy reliance on iPhone production. While Foxconn has already made initial forays into the EV sector, the full development of its automotive business is still a work in progress and will take time. Earlier, Hon Hai Chairman Liu Young-way had expressed his optimism about signing an automotive contract with a Japanese customer within a matter of months, a prophecy that has now come to fruition.