Aisin Seiki and Denso Corporation have announced plans to establish a new joint venture company to develop and sell electrification driving modules. Both companies will have an equal 50% share in the new entity, which is expected to be launched in March next year.

The big push into electrification by many automakers is expected to see demand rise sharply for driving module packages that integrate key components such as transaxles, motor generators and inverters, and the two automotive component manufacturers say that the JV will accelerate the development of technologies that meet automakers’ needs in these areas.

The partnership will work on developing driving modules for hybrids, plug-in hybrids, fuel cell vehicles and electric vehicles, customised to meet performance, cost and regional requirements, with a strong focus on China, where the market for electric vehicles is expected to rapidly expand. Details of the venture are still being discussed.