Musashi Precision Industries Co., Ltd.
Musashi, Delta, and Toyota Tsusho establish a joint venture to manufacture and sell two-wheel EV drive units
~ Aiming for full-scale sales in India, the world’s largest two-wheeler market ~ ……
Musashi Seimitsu Kogyo Co., Ltd. (hereinafter referred to as Musashi), Delta Electronics, Inc. (hereinafter referred to as Delta), and Toyota Tsusho Corporation (hereinafter referred to as Toyota Tsusho) have announced that they will be selling EV drive units for two-wheeled vehicles (hereinafter referred to as EV drive units) in the Indian market. We have agreed to establish a new joint venture company (hereinafter referred to as the joint venture company) for the purpose of manufacturing and sales. This joint venture will mass produce EV drive units in the Indian market and work to receive orders from a wide range of customers.
[Image 1: https://prtimes.jp/i/40312/60/resize/d40312-60-c4c255d45f8b1e95dfb9-1.jpg&s3=40312-60-fdd3bb0d0876f8261db6387c16bd503e-3900×2438.jpg] ▲Signing ceremony photo session photos (scheduled to be taken in advance at the venue on the day)
1. Background and purpose of establishing this joint venture As countries around the world successively announce their goal of achieving carbon neutrality by 2050, reducing emissions of greenhouse gases such as CO2 has become an essential issue. Particularly in emerging countries where two-wheeled vehicles are indispensable for people’s daily lives, environmental problems caused by exhaust gas and global warming caused by CO2 emissions from two-wheeled vehicles are serious problems, and motorcycles are a clean and comfortable means of transportation. Expectations are rising for the spread of new electric mobility.
In the Indian market, the world’s largest two-wheeler market, the government has set a goal of converting 80% of motorcycles to electric vehicles by 2030. Under these government initiatives, the conversion of two-wheeled vehicles to EVs is accelerating ahead of that of four-wheeled vehicles, and the need for local production of
two-wheeled EVs is also increasing.
Against this background, this joint venture will manufacture and sell the EV drive unit jointly developed by Musashi and Delta. Furthermore, we will expand our lineup of EV drive units to meet market needs, engage in further manufacturing and sales, and aim to become a unit manufacturer with the world’s top market share.
By supplying EV drive units, we 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.
2. Features of the joint venture
The EV drive unit mainly consists of a gearbox and a motor. This joint venture will provide high added value, including quality assurance, by developing, manufacturing, and selling a high-performance drive unit that is compact, lightweight, and quiet, which are required for EVs, as an integrated system. 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.
[Image 2: https://prtimes.jp/i/40312/60/resize/d40312-60-65287fa8003b5841c72a-0.jpg&s3=40312-60-894a866617141b42cf6e1e3e5a389eb4-1083×725.jpg] ▲EV drive unit for two-wheeled vehicles
3. Overview of the joint venture
Musashi Delta e-Axle India Private Limited
Doddaballapura 3rd Phase Industrial Area, Village-Raghunathpura, Hobli-Kasaba,Taluk-Doddaballapura, District-Bangalore Rural Karnataka 561203. India
Musashi Auto Parts India Pvt. Ltd. premises
(3) Title and name of representative
CEO Kenji Setogawa
(4) Investment ratio
Musashi Auto Parts India Pvt. Ltd. 51%
Delta Electronics, Inc. 34%
Toyota Tsusho Corporation 15%
4. About the future
In the Indian market, Musashi has invested in and collaborated with EV startup BNC (Headquarters: Coimbatore, Tamil Nadu, India; CEO: Anirudh Ravi Narayanan) to develop two-wheeled EVs equipped with EV drive units. We have agreed to start selling from February 2024. Going forward, we will aim 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.
5. Comments from representatives of the three companies
■Comment from Hiroshi Otsuka, President and CEO of Musashi Precision Industries “Two-wheeled vehicles are an essential means of transportation in the lives of ordinary people in India, and the shift to electric vehicles is expected to progress rapidly towards 2030. By leveraging synergies with Delta, a leading manufacturer of electronic equipment, and Toyota Tsusho, which has a global logistics network, we will provide groundbreaking EV solutions to India and the world.Our mission is to protect people and the environment. A “harmonious” and prosperous global society
To achieve this, we will lead the spread of clean electric mobility by supplying high-performance EV drive units. ”
■Delta Industrial Automation Business Group, General Manager, Andy Liu Comment “Delta has been working for many years to provide solutions that combine high-efficiency power electronics technology with the expertise and know-how we have cultivated.In particular,
transportation equipment accounts for 23% of the world’s CO2 emissions. Electrification contributes to the reduction of greenhouse gases and echoes our company’s founding mission of creating a sustainable future.Today, we are very pleased to announce the establishment of a joint venture between Musashi and Toyota Tsusho. Through this collaboration, the three companies will combine their respective strengths to develop and provide high-performance EV powertrains.Through our products, we will create a better tomorrow for the further spread of EV motorcycles. We would like to contribute to this.”
■Comment from Futoshi Horisaki, COO of Toyota Tsusho Global Parts and Logistics Division
“We have decided to take on the challenge of manufacturing the e-Axle, a core component for EV motorcycles, together with Musashi and Delta, in India, the world’s largest motorcycle market. This new initiative is expected to be organically linked to our company’s “seven priority areas*.” By creating synergies that combine our global network, core businesses, and expertise cultivated in the mobility field, we will provide new value to our partners and society. ”
*”Next Mobility”, “Renewable Energy/Energy Management”, “Africa”, “Circulating Vein Business”, “Batteries”, “Hydrogen/Alternative Fuels”, “Economy of Life”
Musashi Seimitsu Kogyo develops, manufactures, and sells
differentials, transmission gears, planetaries, ball joints, camshafts, etc. for automobiles and motorcycles. While promoting the development of products for next-generation mobility such as electric and autonomous driving in our core business, we will also promote Industry 4.0 through the development of cutting-edge AI technology, develop an energy solutions business aiming to contribute to carbon neutrality, and contribute to achieving the SDGs in a wide range of areas. We are also focusing on creating and expanding a wide range of new businesses, including the development of open innovation. Musashi Web Site: http://www.musashi.co.jp/
Delta Group is a leading global manufacturer of switching power supplies and cooling fans, with a wide range of equipment including industrial automation, building automation, communications power infrastructure, data center infrastructure, EV charging systems, renewable energy and energy storage solutions, and display solutions. By providing these services, we contribute to smart manufacturing and sustainable urban development. Based on our mission statement of “Providing innovative, clean, and highly efficient energy solutions for a better tomorrow,” we leverage our core competencies in high-efficiency power electronics and our ESG-focused corporate culture to help address global issues such as climate change. We are also actively working on environmental issues. Founded in Taiwan in 1971, we currently support our clients with approximately 200 sales and manufacturing locations around the world.
Delta Website: https://www.deltaww.com/
[About Toyota Tsusho]
Toyota Tsusho was established in 1948 as a trading company of the Toyota Group. We are expanding our business with a focus on exporting finished cars and supporting automobile production. It has seven sales divisions, including “Next Mobility,” “Renewable Energy and Energy Management,” “Africa,” “Circulating Vein Business,”
“Batteries,” “Hydrogen and Alternative Fuels,” and “Economy of Life.” We will accelerate our strategies in seven priority areas and establish business domains that are unique to Toyota Tsusho. Toyota Tsusho Web Site: https://www.toyota-tsusho.com/
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Musashi Precision Industries Co., Ltd.