TAIPEI (Taiwan News) — Foxconn on Thursday announced a joint venture with Mitsubishi Fuso Truck and Bus Corporation to develop and make electric buses in Japan.

The company said the venture will be established in the second half of the year, with each partner holding a 50% stake, per CNA. Based at Mitsubishi Fuso’s Toyama plant, it will focus on large electric buses for Japan before expanding overseas.

Mitsubishi Fuso’s head of bus operations Kora Katsuto will serve as CEO, with headquarters in Kawasaki. Japanese media said the partnership marks Foxconn’s first collaboration with a domestic Japanese commercial vehicle maker, as China’s BYD dominates the local electric bus market.

Mitsubishi Fuso will spin off its bus operations for independent management, combining Foxconn’s EV platform with Mitsubishi Fuso’s more than 90 years of bus-making experience. The partners said the goal is to deliver electric buses with efficiency and quality.

Mitsubishi Fuso President and CEO Karl Deppen said public transportation is shifting toward zero emissions while facing expectations for safety. He said the transition poses challenges but offers growth potential.

Foxconn Chief EV Strategy Officer Seki Jun said city buses are well-suited to electrification due to fixed routes and predictable daily mileage. He said operating costs for electric buses could fall to about one-third of diesel models.

Foxconn, best known as Apple’s main iPhone assembler, has accelerated its push into EVs in recent years. The partnership with Mitsubishi Fuso follows last year’s EV collaboration with Mitsubishi Motors.