Realizing Affordable and Sustainable Electric Mobility Network of over 100 Battery Swap Stations Installed Across Nairobi, Kenya
Musashi Seimitsu Industry Co., Ltd. (Global Headquarters: Toyohashi-City, Aichi, Japan; President and CEO: Hiroshi Otsuka; hereinafter "Musashi") is pleased to announce the successful completion of the subsidies project* at the end of February 2025, and the launch of a joint business based on the results of this demonstration.
*[Republic of Kenya / Pilot Project for Digital Services Using Electric Motorcycles to Reduce Environmental Impact].
*[Republic of Kenya / Pilot Project for Digital Services Using Electric Motorcycles to Reduce Environmental Impact].
As a result, the both companies will collaborate to build a more sustainable and self-reliant business model in the Kenyan market, transitioning to full-scale sales and revenue-generating operations. Leveraging the knowledge and trusted relationships cultivated over the years, we will continue to deliver sustainable services that meet local needs, with a particular focus on battery swapping services (BaaS) and the development of related infrastructure.
[Background of this project]
In 2021, Musashi began collaborating with ARC Ride (Headquarters: Nairobi, Kenya; CEO: Jo Hurst-Croft; hereinafter "ARC Ride"), a Kenyan startup that manufactures and sells electric motorcycles, with the goal of supporting the Kenyan government's efforts to achieve a carbon-neutral transportation system.
In FY2024, with support from the Japanese government, we launched a demonstration project in Nairobi, the capital of Kenya, to develop an electric two-wheeler ecosystem in collaboration with ARC Ride. This ecosystem includes electric motorcycles, batteries, battery swapping stations, and digital services. Through this initiative, we have contributed to reducing environmental impact, enhancing driver convenience and safety, and increasing public awareness of electric motorcycles in Kenya.
In FY2024, with support from the Japanese government, we launched a demonstration project in Nairobi, the capital of Kenya, to develop an electric two-wheeler ecosystem in collaboration with ARC Ride. This ecosystem includes electric motorcycles, batteries, battery swapping stations, and digital services. Through this initiative, we have contributed to reducing environmental impact, enhancing driver convenience and safety, and increasing public awareness of electric motorcycles in Kenya.
[Contents and Results of the Demonstration Project in Kenya using the Global South Grant]
1. Verification of the Battery Asset Business Model:
As part of the electric two-wheeler ecosystem, a battery swapping model was implemented, achieving thousands of battery swaps per day. The demonstration confirmed business viability, as the revenue potential per battery is expected to increase with the continued expansion of electric two-wheeler deployment.
2. Reduction of Environmental Impact:
We validated a scheme to reduce CO₂ emissions through the widespread adoption of electric two-wheelers and visualized the impact using carbon credits.
3. Improved Driver Convenience and Safety:
By utilizing IoT technology, we optimized the placement of the battery swapping station through data visualization of user swap frequency and congestion hotspots. To enhance convenience, a total of over 100 battery swapping stations were installed across Nairobi City.
4. Awareness in Kenya:
Raising awareness of electric mobility through the operation of electric motorcycles.
As part of the electric two-wheeler ecosystem, a battery swapping model was implemented, achieving thousands of battery swaps per day. The demonstration confirmed business viability, as the revenue potential per battery is expected to increase with the continued expansion of electric two-wheeler deployment.
2. Reduction of Environmental Impact:
We validated a scheme to reduce CO₂ emissions through the widespread adoption of electric two-wheelers and visualized the impact using carbon credits.
3. Improved Driver Convenience and Safety:
By utilizing IoT technology, we optimized the placement of the battery swapping station through data visualization of user swap frequency and congestion hotspots. To enhance convenience, a total of over 100 battery swapping stations were installed across Nairobi City.
4. Awareness in Kenya:
Raising awareness of electric mobility through the operation of electric motorcycles.
[Battery Asset Model Business Overview]
ARC Ride will manage battery-as-a-service operations for Musashi financed assets. Users can swap their batteries at swapping stations located throughout the city, which helps lower the initial cost of acquiring a motorcycle and reduce daily operating expenses by using electricity, which is more cost-effective than gasoline. To enhance user convenience, a large number of batteries and swapping stations must be deployed. Musashi's financed assets enables ARC Ride to accelerate the expansion of operations without the need for significant initial investment.
Furthermore, this business will utilize data such as driving and location information collected by ARC Ride to enhance operational efficiency, including optimization of placement of stations and batteries to maximize user convenience and reduce operating costs
This approach will enable strategic service deployment tailored to local transportation needs, ultimately enhancing the overall mobility experience in the region.
Furthermore, this business will utilize data such as driving and location information collected by ARC Ride to enhance operational efficiency, including optimization of placement of stations and batteries to maximize user convenience and reduce operating costs
This approach will enable strategic service deployment tailored to local transportation needs, ultimately enhancing the overall mobility experience in the region.
（Expansion of battery swapping stations and motorbikes in Kenya/Nairobi city）
【Future Initiatives】
Through our collaboration with ARC Ride, we will continue to expand our business in Nairobi and other regions, contributing to the realization of sustainable urban transportation and the creation of a decarbonized society.
【About Musashi】
Musashi Seimitsu Industry is developing, manufacturing, and selling next-generation powertrains, steering, and chassis components for automobiles and motorcycles on a global basis, with a view to electrification and autonomous driving. In the new business area, we are expanding our e-mobility business, smart industry business, energy solutions business, and plant biotechnology business by utilizing open innovation.
Musashi Web Site: https://www.musashi.co.jp/en/
Musashi Web Site: https://www.musashi.co.jp/en/
[About ARC Ride]
ARC Ride is a leading EV company in Africa with an assembly plant located in Nairobi, Kenya, building an electric vehicle (EV) ecosystem to support the transition to clean energy mobility systems. In addition to designing, manufacturing, and assembling electric two-wheelers and three-wheelers, ARC Ride offers a unique battery swapping and management platform. This platform enables the electrification of existing first-mile and last-mile transportation solutions, while also providing commuters with new personal e-mobility options.
Web Site: http://arcrideglobal.com/
Web Site: http://arcrideglobal.com/