Mitsubishi has watched its competitors continuously innovate in vehicle manufacturing over the years, while its own product lineup remained stagnant—determined not to repeat past mistakes.

Now, Mitsubishi has signed a deal with a tech startup to develop humanoid robots for its factories, hoping automation can bridge long-standing gaps across multiple business domains.

On July 9, 2026, Mitsubishi announced a memorandum of understanding (MOU) with Highlanders, Inc., a startup originating from the University of Tokyo (hereinafter “Highlanders”), aiming to jointly establish a new industrial foundation centered on human-robot collaboration.

Under the MOU, both parties will explore co-developing humanoid robots tailored for Mitsubishi’s automotive production facilities, as well as mass-producing Highlanders’ products at Mitsubishi’s Kyoto plant.

The project is slated to begin as early as 2027, leveraging Mitsubishi’s existing factory infrastructure for large-scale production and deployment within its own facilities—opening up a brand-new growth trajectory beyond traditional vehicle manufacturing. This initiative allows Mitsubishi to utilize idle production capacity, while Highlanders gains critical experience in automotive manufacturing processes and secures a viable pathway to scalable mass production.

Currently, global automakers including Hyundai Motor Group, Toyota, BMW, and Renault are all entering the humanoid robotics arena—Mitsubishi now formally joins this industrial race.

Automakers view humanoid robots as a lever to boost factory productivity and simultaneously monetize them through direct sales, creating a new revenue stream.

In January this year, Hyundai Motor Group publicly stated its intention to scale the deployment of humanoid robots in vehicle manufacturing and build a production line capable of achieving an annual output of 30,000 units.

Moody’s Investors Service forecasts that by 2050, the global humanoid robotics market could reach $5 trillion.

Labor Shortages and Industry Competition

Highlanders was founded in 2023, emerging from research at the University of Tokyo. It specializes in humanoid robots and quadruped robotic dogs, following a technical approach similar to Boston Dynamics, a partner of Hyundai Motor Group.

The companies stated: “Going forward, both parties will deepen their collaboration to build a new industrial society based on human-robot cooperation. Through humanoid robots, manufacturing will unlock novel industrial value and further strengthen competitiveness in the industrial sector.”

Japan’s aging population is intensifying labor shortages domestically, while rising competition driven by advanced manufacturing technology serves as the core impetus behind this partnership.

During a joint press event, a prototype of Highlanders’ N-series humanoid robot made its debut. The unit featured a glossy black chassis, wearing a white T-shirt, walking steadily onto the stage before retreating to a side exhibition zone.

The two parties plan to commence production of the N-series humanoid robots at the Kyoto plant next year, with a designed monthly capacity of 1,000 units. In recent years, Mitsubishi’s domestic vehicle sales have consistently declined, leaving significant idle production capacity across its facilities.

Takao Kato, President of Mitsubishi Motors, said: “As an original equipment manufacturer, we must proactively prepare for the integration of humanoid robots within our factories. Our current facility does possess surplus space and underutilized production lines. By leveraging idle resources to achieve large-scale robot manufacturing, combined with our proven manufacturing expertise and Highlanders’ cutting-edge products, we create a powerful business synergy.”

Kato revealed that Mitsubishi intends to deploy these humanoid robots across other group plants no later than the second half of 2027. However, management is still evaluating whether the N-series robots are suitable for all operational scenarios—initial plans focus on assigning them to tasks involving component transportation.

Currently, Highlanders has only developed prototypes in a small facility north of Tokyo and urgently requires a manufacturing partner to scale its production capacity.

Hiroya Masuoka, President of Highlanders, said: “Our R&D focus is on high-risk tasks such as material handling. The core design philosophy is to gradually replace manual positions prone to workplace injuries with robotic solutions.”

Mitsubishi has already completed an equity investment in Highlanders, though Kato did not disclose the investment amount or ownership percentage. Mitsubishi also considers additional investments and has no immediate plans to share this technology with Nissan, its partner in the automotive alliance.

Is the Humanoid Robot the Future?

Compared to overseas competitors, Mitsubishi Motors entered the robotics manufacturing domain relatively late—but it believes it can stand out through superior manufacturing quality.

Tesla and Hyundai Motor Group also plan large-scale production of humanoid robots. Tesla aims to begin production in California as early as July this year, with public sales targeted for 2027. BMW is collaborating with a U.S. startup to pilot humanoid robots on its production lines.

In February 2026, BMW Group introduced physical artificial intelligence to Europe for the first time, launching a humanoid robot pilot project at its Leipzig plant. The initiative aims to integrate humanoid robot technology into existing vehicle production workflows and explore broader applications in battery and component manufacturing.

“This will be the future of automotive production,” said Michael Nikolaides, Head of Process Management and Digitalization at BMW.

Automakers have used robotic arms and other automation technologies for decades. So why shift toward humanoid robots? Nikolaides explained: “If you have a humanoid robot, you can place it almost anywhere humans currently work—because it shares the same dimensions and capabilities.”

Robot costs have declined significantly, while reconfiguring assembly lines remains expensive. Thus, deploying robots that seamlessly integrate into existing human workflows offers greater cost efficiency. These BMW robots will transport parts to production tools and perform pick-and-place tasks during battery assembly. Although functionally versatile, like human workers, they are expected to remain dedicated to specific tasks without frequent reassignment.

Nikolaides noted that these robots could assist in repetitive or physically demanding tasks, helping address labor shortages. “We know that employee shortages will emerge within a few years—and humanoid robots can provide crucial support.”

The global humanoid robotics market is projected to grow rapidly. Roland Berger, a German consulting firm, estimates that at the OEM level, the market was worth less than $1 billion in 2025 but could reach $75 billion under optimistic projections by 2035.

The Japanese government has set a target to deploy approximately 10 million AI-powered robots by 2040. To foster domestic technological development, the government will support cutting-edge R&D and early-stage applications.

Who Will Fill the Gaps?

Factory robots are nothing new. General Motors began deploying industrial robots as far back as the 1960s—these systems have been in use for over half a century, and today nearly every vehicle manufacturing plant operates hundreds of industrial robotic arms.

But humanoid robots represent an entirely different category.

Traditional welding and painting robots have distinct forms: fixed to the ground, operating via single robotic arms to repetitively execute tasks within defined zones. Humanoid robots, however, are fundamentally different—they possess full limbs, enabling free movement throughout production floors, picking components from bins and assembling them onto vehicle bodies.

Since industrial robots entered factories, concerns about job displacement have persisted—but widespread unemployment has not materialized.

Data from the Federal Reserve Bank of St. Louis, citing Bureau of Labor Statistics figures, shows that in 1979, around 900,000 people worked in the U.S. auto manufacturing industry. Despite a massive increase in automation equipment, employment in the sector actually rose to 1 million by 2024.

Previously, robots primarily took over hazardous, extreme-environment, and repetitive tasks. Welding and painting in final assembly plants are now fully automated; casting and forging operations rely on machines to handle hot materials; material transfer between large presses in stamping plants is also managed by machinery.

Workers previously employed in these roles did not resist robot integration. As vehicle complexity increases—with more components and features—labor displaced by automation is typically reassigned to other positions along the production line. This is the key reason why employment in the automotive manufacturing sector has remained stable over time.

Companies like Boston Dynamics argue that humanoid robots do not reduce jobs—they actually create more. Their rationale: humanoid robots incorporate numerous motors and sensors, with casings produced via casting, injection molding, and stamping processes. Once deployed, they require dedicated personnel for commissioning, maintenance, and daily operations—this is the logic behind the robotics industry’s optimism regarding employment growth.

Yet skepticism persists.

A chief executive officer at a Tier-1 parts supplier once confided privately that even a $250,000 humanoid robot could recoup its entire purchase cost within two years. He explained: “One robot can replace two workers and operate non-stop across two shifts.” Furthermore, robots require no rest, holidays, or breaks—eliminating issues like absenteeism, tardiness, or sick leave.

Automakers and their suppliers may not even need to outright purchase the equipment. Hyundai Motor Group plans to launch a “robot-as-a-service” model—essentially a leasing scheme inclusive of full maintenance and support—significantly reducing the initial financial burden for factories adopting humanoid robots.

Hyundai has already finalized an ambitious rollout, planning to build a production line at its major facility in Savannah, Georgia, by 2028 to achieve an annual capacity of 30,000 humanoid robots.

Automakers entering the humanoid robotics space extend far beyond Hyundai. Tesla, XPeng, and GAC have all launched related R&D efforts, while BMW and Mercedes-Benz have begun field testing in their own vehicle plants. Toyota and Honda pioneered humanoid robotics two decades ago—but today, either they have fallen behind current R&D standards, or they remain conspicuously silent on their progress.

Looking at the present landscape, global manufacturing widely faces labor shortages. Fewer people are willing to enter factory work, and youth interest continues to decline.

U.S. Bureau of Labor Statistics data shows that in certain months, manufacturing job vacancies exceeded 500,000—far surpassing the number of new hires. A joint report by Deloitte and the National Association of Manufacturers predicts that by 2030, the manufacturing labor gap will widen to 3.8 million positions. Meanwhile, the U.S. government is actively promoting the reshoring of manufacturing jobs.

So who will fill these vacancies? Humanoid robots may offer the optimal solution. Rather than replacing human jobs, they are likely to assume roles that nobody else wants to perform. From this perspective, the irony is not lost.

References:

asia.nikkei, techbrew, BBC, wardsauto, automotive news

This article comes from the WeChat official account: Automotive Business Review, edited by Huang Dalu, author: Driving the New Auto Forward

Source: Automotive Business Review