Musashi, Delta Electronics, Toyota Tsusho to Produce EV Units in India

Musashi Auto Parts India Pvt. Ltd. (Musashi) has entered into a joint venture with Delta Electronics, Inc. (Delta) 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. At present, 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 Private Limited, 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.

Hiroshi Otsuka, President & Group CEO, Musashi Seimitsu Industries, said, “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 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 125 cc class, which is the volume zone for motorcycles in the Indian market.