Asia Tech Wire (May 24) -- Mitsubishi Electric and Japanese auto parts supplier Aisin plan to establish a joint venture for electric and hybrid vehicle parts.

The two sides announced the tie-up on Friday with the aim of utilizing their combined scale to improve research and development efficiency amid increased price competition.

The joint venture will develop, produce and sell traction motors, power converters (inverters, etc.) and their control software, which will become optimized for vehicles and relevant systems and used in next-generation EVs, including battery EVs (BEVs) and plug-in hybrid vehicles (PHEVs).