Nissan stock rallies as Foxconn flags Japan EV ambitions

Published 04/09/2025, 10:55 PM
© Reuters.

Investing.com-- Nissan Motor Co., Ltd. (TYO:7201) shares rose sharply in Japanese trade on Thursday after Taiwan’s Foxconn (SS:601138) said it was seeking partnerships with Japanese automakers, including Nissan (OTC:NSANY), to build and sell electric vehicles in the country. 

Nissan shares jumped 8.9% to 339.3 yen, tracking a broader rally in Japanese markets as they cheered a postponement of U.S. President Donald Trump’s trade tariffs. The Nikkei 225 index rallied 8.4%. 

Nissan peers Honda (NYSE:HMC) Motor and Toyota Motor (NYSE:TM) rose more than 6% apiece. 

Foxconn, formally known as Hon Hai Precision Industry Co Ltd (TW:2317), is seeking partnerships with Japanese automakers to build and sell EVs, a company executive said  on Wednesday.

The contract electronics giant has in the past expressed an interest in a Nissan partnership, and could also consider taking a stake in the automaker. Speculation over such a tie-up grew after discussions over a Honda-Nissan merger largely fell through this year. 

Foxconn wants to tie-up with Nissan, but is currently not engaging with the automaker, a Foxconn executive said in an interview with the Nikkei newspaper. 

The executive also flagged potential for a broader partnership with Honda, Nissan, and Mitsubishi Motors- Nissan’s junior partner. Foxconn confirmed a partnership with Mitsubishi to supply it with EVs. 

A Foxconn EV partnership represents a major lifeline for Nissan, which is struggling with a sustained sales decline across the globe. Its sales in China- a major automobile market- have tumbled amid heightened competition from local EV makers such as BYD (SZ:002594), and more recently, Xiaomi (OTC:XIACF).

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