Foxtron, an automaker partly owned by Taiwan iPhone manufacturer Hon Hai Technology Group, and Mitsubishi Motors of Japan said Wednesday they have agreed to develop an electric vehicle to be sold in Australia and New Zealand.

Hon Hai, also known as Foxconn, is one of a growing number of technology companies that are leveraging their knowhow in electronics and communications to try to break into the EV market, snapping up links in the automotive supply chain, according to an AP report.

Foxtron is a joint venture between Hon Hai and Taiwan's Yulon Motor Co Yulon makes Nissan vehicles under license.

There was speculation earlier this year, when talks on a possible merger between Nissan and Honda Motor Corp. fell through, that Hon Hai might make a bid for Mitsubishi’s alliance partner Nissan Motor Co.

The two companies said Wednesday that the EV developed by Foxtron will be produced by Yulon and introduced in Oceania in the second half of 2026.

Foxtron and Mitsubishi Motors gave no financial details and said their memorandum of understanding would be followed by further talks.

Japanese automakers like Mitsubishi have been stepping up efforts to compete in the EV segment as they contend with intense competition from their Chinese rivals.

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Mitsubishi has set a target for having all of its product lineup be EVs or hybrids by 2035.

Foxtron showcased its Model B, a sleek EV hatchback, and its automotive electronics at the Consumer Electronics Show in Las Vegas in January.

Foxconn lists 11 vehicle models on its website, including its Model T bus, Model V pickup truck, Model N van, its Model B, and its “luxury flagship” Model E sedan.