Musashi Seimitsu Industry 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 have agreed to establish a new joint venture company (hereinafter referred to as the Joint Venture Company) for the purpose of manufacturing and selling e-Axle for two-wheeled vehicles (hereinafter referred to as e-Axle). The Joint Venture Company will mass produce e-Axle in the Indian market and work to expand sales from a wide range of customers.



At the Signing Ceremony
(From right to left, Mr. Mitsutake and Mr. Horisaki from Toyota Tsusho,
Mr. Setogawa and Mr. Otsuka from Musashi, Mr. Liu and Mr. Ka from Delta Group)

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-wheeled vehicle market, the government has set a goal of converting all two-wheeled vehicles under 150cc to EV by 2025. Under these government initiatives, the conversion of two-wheeled vehicles to EV is accelerating ahead of that of four-wheeled vehicles, and the need for local production of two-wheeled EV is also increasing.

Responding to this background, the Joint Venture Company will manufacture and sell the e-Axle jointly developed by Musashi and Delta. Furthermore, it will expand the lineup of e-Axle to meet market needs, engage in further manufacturing and sales, and aim to become a manufacturer with the world's top market share.

By supplying e-Axle, it will contribute to spread two-wheeled EV in the Indian market and to the world, and also contribute to achieving the global consensus of carbon neutrality.

e-Axle for Two-Wheeled Vehicles

The e-Axle mainly consists of a gearbox and a motor. The Joint Venture Company will provide high added value including quality
assurance by developing, manufacturing, and selling a high-performance e-Axle with the compact, lightweight, and quiet characteristics 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.

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 e-Axle. We have agreed to start selling from February 2024. Going forward, we will aim to supply e-Axle 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.