Musashi Auto Parts India (Musashi), a wholly-owned subsidiary of Musashi Seimitsu Industries, Japan and a leading manufacturer of two- and four-wheeler transmission components in India, has entered into a joint venture with Delta Electronics (Delta) and Toyota Tsusho Corporation (Toyota Tsusho) to sell EV drive units for two-wheelers 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. As per the understanding, Musashi will hold 51% investment share, followed by 34% by Delta and 15% by Toyota Tsusho.
The JV is christened Musashi Delta e-Axle India, which will establish a motor assembly factory and a drive unit assembly factory within the Musashi Bangalore plant. By September 2024, it aims to achieve localisation of more than 2/3rd of the total cost. The products manufactured will also be exported to the ASEAN & African markets.
Hiroshi Otsuka, President and Group CEO, Musashi Seimitsu Industries said, “The Indian market is one of the largest two-wheeler market and the emissions from these vehicles cause serious environmental harm; a reason for increased acceptance of electric mobility in two-wheeler market in India. By supplying EV drive units, this JV will lead the spread of two-wheeler EVs in the Indian market and around the world, while also contributing to the realisation of carbon neutrality.”
The joint venture will work in areas of developing, manufacturing, and selling 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.
“We have the advantage of having the world’s top share in transmissions for two-wheeled vehicles, and by leveraging synergies with Delta Electronics, a leading manufacturer of electronic equipment, and Toyota Tsusho, which has a global logistics network, we are bringing ground-breaking EV adoption to India and the world”, added Otsuka.
In India, Musashi is working with BNC, an EV startup company in which it has invested and collaborated, to develop products equipped with EV drive units. The company has agreed to start selling electric two-wheelers 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.
