News

AISIN Corporation has been selected for the Ministry of Economy, Trade and Industry (METI)’s FY2024 Global South Future-Oriented Co-Creation Project Subsidy Program (Large-Scale Demonstration Projects in Non-ASEAN Countries). The selected project is titled “Overseas Production Demonstration of Japan-Quality Automatic Transmissions in India.”

Through this program, METI aims to support large-scale demonstration projects conducted by Japanese companies in Global South countries*, with the goal of revitalizing local markets and strengthening economic partnerships with Japan.

Under this initiative, AISIN will conduct a production demonstration of Continuously variable transmissions　(CVT) in India. AISIN have already engaged in local production of eAxle in India. However, compared to the eAxle, the CVT are structurally more complex, making local production significantly more challenging.
 Production equipment will be installed at AISIN AUTOMOTIVE HARYANA Pvt. Ltd., AISIN’s local subsidiary in India. The project aims to achieve production of CVTs with Japanese-level quality at low cost, while also verifying the potential for local procurement through the development and utilization of local suppliers.

The CVT production plan in India represents an unprecedented large-scale upfront investment for AHL, with a long-term investment recovery period anticipated. In addition to the significant financial burden of this initial investment, the technical and commercial risks associated with overseas CVT production for the first time necessitate an extremely cautious approach in the decision-making process for commercialization.

By receiving support from the Government of Japan, AHL will be able to swiftly advance the demonstration project, thereby mitigating these risks. This support will enable timely decision-making for commercialization ahead of major overseas competitors, establishing a critical foundation for securing the competitive advantage of Japanese companies in high-growth markets.

By establishing local production of CVTs, AISIN expects to expand demand and production in India, increase exports of parts from Japan, and contribute to job creation. Furthermore, the use of fuel-efficient CVTs will help reduce CO₂ emissions from vehicles, contributing to the realization of global carbon neutrality.

AISIN will continue to promote the development of technologies to improve the environment and society, thereby realizing the AISIN Group Philosophy: Inspiring “movement,” creating tomorrow.

*Global South countries: ASEAN, India, the Middle East, Africa, Latin America, and Pacific Island nations.
*Note: The information in this release is current as of the date of announcement and is subject to change without prior notice.