The joint venture between Mitsubishi Electric and Aisin for electric and hybrid vehicle components is an exciting development. Let's dive into the details:

1. Joint Venture Overview:

   - Partners: Mitsubishi Electric (majority stakeholder) and Aisin

   - Purpose: To develop and produce components for electric and hybrid vehicles

   - Focus: Energy-saving inverters and other related components

   - Scale Advantage: Leveraging their combined scale for more efficient research and development

2. Mitsubishi Electric:

   - Automotive Equipment Business: Last fiscal year, Mitsubishi Electric's automotive equipment business achieved sales of 944.1 billion yen ($6.03 billion). This business includes power steering and advanced driver assistance systems.

   - Shift to EVs: Mitsubishi Electric has been strategically moving away from other products (such as navigation systems and fuel injectors for gasoline-powered vehicles) to concentrate resources into electric vehicles (EVs).

3. Aisin:

   - Affiliation: Aisin is an affiliate of Toyota Motor.

   - Auto Parts Expertise: Aisin specializes in making powertrains, brakes, and body components.

   - Automatic Transmissions: Aisin is currently the world's top supplier of automatic transmissions. However, they recognize that demand for these transmissions may decrease as EVs gain ground.

   - Strategic Partnerships: Aisin aims to establish new growth businesses through strategic partnerships with other companies.

4. Industry Context:

   - Technological Adaptation: The auto industry faces pressure to adapt to new technologies, including electrification and autonomous driving. Companies are investing heavily in research and development (R&D).

   - China's EV Market: China, as the world's largest EV market, deals with overcapacity issues that impact prices, affecting parts makers.

   - Cost and Quality Demands: The auto industry demands low costs and high quality from suppliers, especially as EVs reshape the industry landscape.

5. Other Players:

   - Hitachi: In 2021, Hitachi integrated its auto parts unit with three former Honda affiliates to create a new company called Hitachi Astemo.

Overall, this joint venture reflects the industry's dynamic response to the EV revolution. As companies collaborate and adapt, we can expect further innovations in electric and hybrid vehicle components.