Daimler Truck’s Fuso and Foxconn plan zero-emission bus OEM in Japan from 2026

Mitsubishi Fuso and Foxconn plan to establish a new bus OEM in Japan, targeting accelerated development of zero-emission buses from 2026.

Mitsubishi Fuso Truck and Bus Corporation (MFTBC), the Daimler Truck subsidiary responsible for the FUSO brand, has announced on January 22nd 2026 plans to create a standalone bus company in Japan together with Hon Hai Technology Group (Foxconn), marking a further step in the convergence of traditional commercial vehicle manufacturing and electronics-led electric vehicle development.

Katsuto Kora, currently Director and Head of FUSO Bus at MFTBC, has been designated CEO of the future company. The new bus company will be headquartered in Kawasaki, Japan, while vehicle development and manufacturing will be carried out at the existing FUSO bus plant in Toyama. Products will be marketed under the FUSO brand.

Daimler Truck’s MFTBC with Foxconn for buses in Japan

The new company is expected to be established in the second half of 2026, subject to regulatory and shareholder approvals. It will operate as a bus-focused OEM, combining FUSO’s long-standing expertise in bus design, engineering and manufacturing with Foxconn’s zero-emission vehicle (ZEV) technologies and global supply-chain capabilities.

The announcement builds on a memorandum of understanding signed earlier by the two groups to explore strategic collaboration in zero-emission mobility. That initial framework focused on technical and commercial cooperation; the newly announced entity represents a shift toward a dedicated industrial structure with its own governance and management.

The move also formalises developments first reported in June 2025. At the time, Japanese business daily Nikkei Asia reported that Foxconn was close to supplying battery-electric buses to Mitsubishi Fuso, based on the Foxtron-developed Model T and Model U platforms. Both vehicles were expected to be rebadged under the FUSO name, with the partners also said to be exploring the creation of a dedicated entity to manage the project.

Focus on zero-emission buses, with ICE continuity

As a bus-only OEM, the company’s primary mandate will be to accelerate the development and launch of competitive battery-electric buses for both the Japanese domestic market and selected international markets. At the same time, it will continue to develop and refine conventional internal combustion engine (ICE) bus offerings, reflecting the transitional nature of many public transport markets.

Initial cooperation between the partners will involve Foxtron Vehicle Technologies, a Foxconn subsidiary, and Mitsubishi Fuso Bus Manufacturing (MFBM). The collaboration will cover development, production, supply-chain management and sales of zero-emission buses, starting with Foxtron-developed Model T and Model U platforms.

The Model T has been in service in Taiwan since 2022, while the smaller Model U was unveiled in late 2023. A Japanese market launch was indicated for 2027.

This dual-track strategy is designed to allow faster EV time-to-market while maintaining a product range aligned with current customer and regulatory requirements.

If completed, the project would stand as a rare, fully industrial partnership between a Daimler Truck commercial vehicle brand and a global electronics manufacturer, focused squarely on Japan’s bus market.

Karl Deppen, CEO of MFTBC: “We are excited to join forces with Foxconn. This collaboration will combine the strengths of both parties to accelerate our transformation in the bus sector. By combining FUSO and Foxconn’s extensive experience and technological know-how, we will offer customers state-of-the art solutions for public transport, thereby contributing to society both in Japan and abroad.”

“Mobility is a strategic priority for Foxconn,” said Jun Seki, Foxconn Chief Strategy Officer for EVs. “This collaboration with MFTBC will provide a comprehensive electrification solution for Japan’s transportation ecosystem. This approach will significantly shorten development cycles and enhance cost-efficiency.”

Katsuto Kora, designated CEO of the new bus OEM: “The new joint venture will integrate the corporate cultures of both companies, blending Japan’s spirit of manufacturing excellence with Foxconn’s agility and technological prowess. Given the extensive existing partnerships of both shareholders, we expect even broader collaboration opportunities in the field of future technologies in the years to come. Our focus will be on meeting customer expectationsnot only for current conventional ICE improvement but also for zero-emission transportation and leading FUSO bus into a new era of digitalization and electrification.”