Musashi Auto Parts India (Musashi), a 100 per cent owned subsidiary of Musashi Seimitsu Industries, Japan and a manufacturer of two-wheeler and four-wheeler transmission components in India, has entered into a joint venture with Delta Electronics and Toyota Tsusho Corporation (Toyota Tsusho) to sell EV drive units for two-wheeled vehicles in India.
Under this JV, Musashi and Delta will jointly develop the EV drive unit and Toyota Tsusho will handle the distribution through its global logistics network.
Musashi holds a 51 per cent investment share in this JV, followed by 34 per cent by Delta and 15 per cent by Toyota Tsusho.
The JV 'Musashi Delta e-Axle India' will establish a motor assembly factory and a drive unit assembly factory within the Musashi Bangalore plant and by September 2024, it will achieve a localisation level of more than 2/3rd of the total cost. The products manufactured will also be exported to the ASEAN & African markets.
Commenting on the JV, Hiroshi Otsuka, President and Group CEO of Musashi Seimitsu Industries, said, “The Indian market is one of the largest two-wheeled market and the emissions from these vehicles cause serious environmental harm; a reason for increased acceptance of electric mobility in two-wheeled market in India. By supplying EV drive units, this JV will lead the spread of two-wheeled EVs in the Indian market and around the world, while also contributing to the realisation of carbon neutrality.”
This joint venture is a high value partnership, including developing, manufacturing, and selling a high-performance drive unit that is compact, lightweight, and quiet, a critical requirement for EVs. Furthermore, it will enable rapid and flexible research and development that anticipates changes in the market and technology, as well as efficient procurement and sales by leveraging the respective business bases of Musashi, Delta, and Toyota Tsusho.
In the Indian market, Musashi India is working with BNC, an EV startup company in which Musashi has invested and collaborated, to develop products equipped with EV drive units. The company has agreed to start selling two-wheeled EVs from February 2024 and going forward, it aims to supply EV drive units to a wide range of customers, with the main target being the 125cc class, which is the volume zone for motorcycles in the Indian market.