Musashi, Delta Electronics and Toyota Tsusho form JV to manufacture e-2W motors and driveunits

On September 27, 2023, Musashi Auto Parts India Pvt Ltd (Musashi), a subsidiary of Musashi Seimitsu Industries in Japan, announced a joint venture with Delta Electronics, Inc. (Delta) and Toyota Tsusho Corporation (Toyota Tsusho). Musashi holds a 51% stake in the venture, followed by Delta with 34%, and Toyota Tsusho with 15%.

The collaboration aims to manufacture and distribute electric vehicle drive units for two-wheeled vehicles in India, specifically Musashi and Delta will jointly develop the EV drive unit and Toyota Tsusho will handle the distribution through its global logistics network. The companies aims to manufacture and sell 1 Million units under this JV by 2030.

The newly formed entity, named Musashi Delta e-Axle India Private Limited, will establish motor and drive unit assembly facilities within the Musashi Bangalore plant. By September 2024, the localization level is projected to exceed two-thirds of the total cost, said an official statement. Additionally, the products will be exported to ASEAN and 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 realization of carbon neutrality.”

This partnership will focus on developing, manufacturing, and marketing high-performance drive units that are compact, lightweight, and noise-efficient, which are essential attributes for EVs. The collaboration will facilitate responsive research and development, allowing the venture to adapt to market and technological changes. It will also streamline procurement and sales strategies by leveraging the collective expertise of Musashi, Delta, and Toyota Tsusho.

In the Indian market, Musashi India is collaborating with EV startup company BNC, in which Musashi has invested. They plan to introduce two-wheeled EVs for sale in February 2024, with a focus on supplying EV drive units for the popular 125cc class of motorcycles in the Indian market, added the company statement.