Full-scale sales of 2-Wheel e-Axle in India, the World Largest Market Musashi, Delta Electronics and Toyota Tsusho establish Joint Venture

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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)

1. Background and objective of establishing the Joint Venture Company
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.

2. Features of the Joint Venture Company
▲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.

3. Overview of the Joint Venture Company
(1) Name Musashi Delta e-Axle India Private Limited
(2) Location Doddaballapura 3rd Phase Industrial Area, Village-Raghunathpura, Hobli-Kasaba,Taluk-Doddaballapura, District-Bangalore Rural Karnataka 561203. India
On the premises of Musashi Auto Parts India Pvt. Ltd.
(3) Title and Name of Representative Kenji Setogawa, CEO
(4) Investment Ratio Musashi Seimitsu Industry Co., Ltd. 51%
Delta Electronics, Inc. 34%
Toyota Tsusho Corporation 15%

4. About 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 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.

5. Comments from Representatives of Companies
Comment from Mr. Hiroshi Otsuka, CEO of Musashi Seimitsu Industry
"In India, two-wheeled vehicles are an indispensable mode of transportation for the common people, and electrification is expected to progress rapidly towards 2030. Our company has the strength of being the world's top share in transmissions for two-wheeled vehicles, and by leveraging synergies with Delta, a leading manufacturer of electronic devices, and Toyota Tsusho, which has a global logistics network, we will provide innovative electrification solutions to India and the world.
Towards the realization of enriched Harmony between our lives and Earth, which is our Purpose, we will lead the proliferation of clean e-mobility through the supply of high-performance e-Axle.".

Comment from Mr. Andy Liu, General Manager of Industrial Automation Business Group, Delta Electronics
“Our Company, Delta Electronics has been engaged in providing solutions that integrate the high-efficiency power electronics technology with domain knowledge and know-how that we have cultivated for years. In particular, electrification in the transportation sector is one of our focus industries, as it currently accounts for 23% of the world's CO2 emissions and reducing it by electrification will contribute to making a sustainable future, which harmonizes with our mission from the very beginning of the company.
Today, I am very excited to announce the establishment of a joint venture with Musashi and Toyota Tsusho. Through this collaboration, three companies will bring together their respective strengths to develop and provide high-performance e-Axle. We all would like to contribute to creating a better tomorrow with our products for the further spread of two-wheeled EVs.”
-Andy Liu, General Manager, Industrial Automation Business Group -

Comment from Mr. Futoshi Horisaki, COO for Global Parts and Logistics Division, Toyota Tsusho
“We have decided to take on the challenge of manufacturing the e-Axle, a core component for two-wheeled EV, in India, the world's largest two-wheeled vehicle market, together with Musashi and Delta. This new initiative is expected to be organically linked to our company's “Seven priority domains*”. 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 and Energy Management", "Africa", "Circular Economy", "Batteries", "Hydrogen and Alternative Fuels", "Economy of Life"

About Musashi
Musashi Seimitsu Industry Co., Ltd. is a global auto parts Tier1 company for automobiles and motorcycles, whose headquarters is located in Toyohashi, Japan. It has 35 manufacturing sites spreading across Europe, North and South America, China, and South East Asia. Musashi specializes in designing, developing and manufacturing products such as Differential Assemblies, Transmission Gears and Assemblies, and Linkage and Suspension (L&S) products especially for the future automobiles including electric and autonomous vehicles. Musashi is also generating and expanding new businesses through open innovation with global startups to contribute to the SDGs in wider business domains. Musashi AI, a leading-edge AI technology subsidiary to lead Industry 4.0, is one of the examples.
Musashi Web Site: https://www.musashi.co.jp/en/

About Delta
Delta, founded in 1971, is a global leader in switching power supplies and thermal management products with a thriving portfolio of smart energy-saving systems and solutions in the fields of industrial automation, building automation, telecom power, data center infrastructure, EV charging, renewable energy, energy storage and display, to nurture the development of smart manufacturing and sustainable cities. As a world-class corporate citizen guided by its mission statement, “To provide innovative, clean and energy-efficient solutions for a better tomorrow,” Delta leverages its core competence in high-efficiency power electronics and its ESG-embedded business model to address key environmental issues, such as climate change. Delta serves customers through its sales offices, R&D centers and manufacturing facilities spread over close to 200 locations across 5 continents.
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. We have seven sales divisions and will accelerate our strategies in “Seven priority domains” such as “Next Mobility”, “Renewable Energy and Energy Management”, “Africa”, “Circular Economy”, “Batteries”, “Hydrogen and Alternative Fuels” and “Economy of Life” for establishing business domains with the unique strengths of Toyota Tsusho.
Toyota Tsusho Web Site : https://www.toyota-tsusho.com/