Musashi India to ramp up EV component localisation to 70% by year-end

The company aims to produce 1 million e-axles per year by 2030 to accelerate India's transition to green mobility

Musashi Auto Parts India, a subsidiary of Japanese auto parts giant Musashi Seimitsu Industries, has announced plans to significantly increase localisation for its electric vehicle (EV) components from the current 10 per cent to 60-70 per cent by the end of the financial year. To support this, Musashi India has invested Rs 160 crore for the mass production of EV two-wheeler e-axles at its Bangalore facility.

A total of Rs 60 crore of this investment has been allocated towards setting up the new assembly lines for both motor and driving units. This investment would also be utilised for establishing new assembly lines for EV transmission components and upgrading existing facilities. Last year, the firm invested Rs 70 crore as it announced its entry into the electric mobility space in India in collaboration with Bharat New-Energy Company Motors.

The commencement of mass production was marked by a line-off ceremony held on June 5 at the Bangalore facility. In its initial phase, the facility is set to produce 10,000 e-axles per month, with plans to scale up by adding more production lines from the third year onwards. The e-axles are designed to be compact, lightweight, and quiet, offering improved performance, range, and riding experience for EV two-wheeler users.

Naoya Nishimura, CEO of Musashi India & Africa Region, said, “Our aim is to produce 1 million e-axles per year by 2030. With our expertise and the technical capabilities developed through the Musashi Group's history, we are equipped to handle all aspects of e-axle production. This marks a significant milestone in our journey towards accelerating the adoption of EVs in India and enabling a faster transition to green mobility.” 

“Our production lines are equipped with technologies that will ensure seamless integration across the assembly line, increasing efficiencies and production output. With the rapid growth of EV two-wheelers in India, the need to build a local and robust ecosystem of EV components is imperative,” Nishimura added.

Musashi currently has a market share of 60 per cent for auto transmission components in internal combustion engine (ICE) two-wheelers. They will begin the delivery of their electric two-wheelers from next month. In FY24, Musashi India reported sales of approximately Rs 1,400 crore.

The immediate goal of the company is to successfully complete the current phase. In the next two years, they will focus on developing cheaper and lighter products for the market. Subsequently, they will invest in R&D to offer the market a higher-performing motor at a lower cost. In September 2023, Musashi entered into a joint venture with Delta Electronics, Inc. and Toyota Tsusho Corporation, forming Musashi Delta e-Axle India. 

With a 51 per cent stake in the joint venture, Musashi has commenced manufacturing and selling of e-axles for two-wheeler EVs targeting the Indian, African, and ASEAN markets.

Musashi India is also collaborating with BNC Motors to develop EV drive units for BNC's upcoming EV two-wheeler, which will be equivalent to a 125cc ICE scooter.