Integrated E-Axles: Powering South-East Asia’s Electric Two-Wheeler Growth

Why Integrated E-Axles Are Becoming the Powertrain of South-East Asia’s Electric Two-Wheelers

The South-East Asia two-wheeler e-axle market is projected to grow from USD 227 million in 2025 to USD 584 million by 2032, registering a 14.45% CAGR during the forecast period. Rising electric two-wheeler adoption and demand for compact, cost-efficient powertrain solutions are driving this growth.

Electric two-wheelers are moving beyond simply replacing internal-combustion engines with electric motors. Manufacturers are now looking for ways to make electric scooters and motorcycles lighter, more efficient, easier to manufacture, and more affordable.

This is where the integrated e-axle is becoming increasingly important. By combining key drivetrain components such as the electric motor, gearbox, and power control unit into a compact system, e-axles can simplify vehicle architecture while reducing mechanical complexity.

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Why Are E-Axles Becoming Important for Electric Two-Wheelers?

Traditional electric two-wheelers can use separately packaged motors, transmissions, controllers, and other drivetrain components. An integrated e-axle brings several of these functions together into a more compact powertrain.

This approach can help manufacturers simplify assembly, reduce vehicle weight, improve energy efficiency, and lower production costs.

These advantages are particularly important in South-East Asian markets, where electric two-wheelers are highly price-sensitive and manufacturers are looking for scalable platforms that can serve multiple vehicle models.

What Is an Integrated Two-Wheeler E-Axle?

An e-axle for an electric two-wheeler can integrate key drivetrain components such as:

• Electric motor
• Gearbox
• Power control unit
• Controller and related power electronics

Instead of treating these as separate systems, manufacturers can integrate them into a compact powertrain module.

The result is a more streamlined architecture that can help OEMs reduce packaging requirements and mechanical complexity while improving drivetrain integration.

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Motor + Gearbox + Controller: The Shift Toward Integrated Powertrains

One of the most important trends identified in the market is the increasing integration of motor, transmission, and controller.

For electric scooters and motorcycles, space and weight are particularly important. Compact e-axle architectures can provide OEMs with more flexibility when designing the vehicle while reducing the number of individual components that need to be assembled.

The shift is also encouraging suppliers to develop modular e-axle platforms that can be adapted across different electric two-wheeler models.

How Are E-Axles Helping Reduce Electric Two-Wheeler Costs?

Cost remains one of the biggest considerations for electric two-wheelers.

An integrated e-axle can reduce the number of separately manufactured and assembled drivetrain components. This can simplify manufacturing and potentially lower production costs.

The impact is especially important in price-sensitive markets such as South-East Asia and India, where affordable electric scooters and motorcycles are essential for mass adoption.

Localization can further improve cost competitiveness by reducing dependence on imported components and helping manufacturers meet domestic-content requirements.

Localization Is Becoming a Major E-Axle Strategy

The South-East Asian e-axle ecosystem is increasingly moving toward localized production.

Manufacturers are investing in regional production capabilities to reduce costs, strengthen supply chains, avoid import duties, and align with government policies supporting domestic EV manufacturing.

For example, Musashi has expanded integrated e-axle production capabilities in Vietnam and has also invested in EV component manufacturing in India. The report highlights the increasing focus on raising local content across the e-axle supply chain.

This means the opportunity is not limited to selling e-axles. Suppliers that can establish regional manufacturing, engineering, assembly, and service capabilities could gain a stronger position as electric two-wheeler production scales.

India Is Emerging as a Major E-Axle Growth Market

India is projected to demonstrate the highest growth in the South-East Asia two-wheeler e-axle market during the forecast period.

Growing electric two-wheeler adoption, demand for compact powertrains, local manufacturing, and government support are contributing to this opportunity.

Musashi began mass production of integrated e-axles at its Bengaluru facility in June 2024, with an annual Phase I target of 120,000 units. OEMs such as BNC Motors are also integrating compact e-axle systems into electric scooters.

The combination of a large two-wheeler market and expanding EV component manufacturing makes India an important location for future e-axle production.

Vietnam and Indonesia Are Expanding the Regional Opportunity

Vietnam and Indonesia are also important markets within the regional e-axle ecosystem.

Vietnam's growing electric two-wheeler industry is encouraging suppliers to establish localized powertrain capabilities. In February 2024, VinFast launched an electric scooter equipped with a locally manufactured integrated e-axle system.

Indonesia's established vehicle manufacturing ecosystem and increasing electrification efforts are also creating opportunities for e-axle suppliers.

These markets demonstrate how localized electric powertrain production can develop alongside domestic two-wheeler manufacturing.

Lightweight E-Axles Could Improve Electric Scooter Efficiency

Weight has a direct impact on electric two-wheeler efficiency and performance.

As manufacturers look to increase range while maintaining compact vehicle dimensions, lightweight e-axle designs are becoming increasingly important.

Integrating multiple drivetrain functions into a single module can help reduce packaging complexity. Further improvements in motor design, materials, power electronics, and gearbox architecture can create additional opportunities for lightweight powertrain development.

For electric scooters and motorcycles, this combination of compactness, efficiency, and weight reduction can support better vehicle performance.

Intelligent E-Axles Are Connecting Powertrain and Vehicle Electronics

The e-axle is also becoming connected to the broader electronic architecture of the electric two-wheeler.

The report highlights developments involving next-generation E/E architectures and sensor fusion, including the use of IMUs and wheel-speed sensors. These technologies can support greater vehicle intelligence and create additional hardware-software integration opportunities.

Premium electric two-wheelers are also incorporating features such as regenerative braking and Level 1/Level 2 autonomy functions, creating additional opportunities for intelligent powertrain systems.

The long-term opportunity is therefore not simply a more compact drivetrain, but an e-axle that works as part of an increasingly connected electric vehicle architecture.

Modular E-Axles Could Help OEMs Scale Faster

Electric two-wheeler manufacturers often need to develop multiple models for different customer segments and price points.

A modular e-axle platform can potentially be adapted across several vehicle configurations instead of requiring a completely different drivetrain for every model.

This can help OEMs reduce development complexity, standardize components, and achieve greater production scale.

For suppliers, modular platforms also create opportunities to serve multiple OEM programs across different South-East Asian markets.

Supply Chain Dependence Remains a Challenge

Despite the benefits of localization, the e-axle supply chain still depends on critical materials and components.

The manufacturing process involves materials such as high-grade steel, copper, and magnets, which are used across electric motors and other drivetrain components.

The report identifies supply-chain reliance as a key challenge. Increasing local content and establishing regional component ecosystems can help improve resilience, but manufacturers must still manage material availability, technology dependencies, and production scalability.

Thermal Management and Power Delivery Are Technical Challenges

Compact packaging also creates engineering challenges.

As manufacturers integrate motors, gearboxes, and power electronics into smaller spaces, managing thermal loads and continuous power delivery becomes increasingly important.

Packaging limitations can also affect torque and power output. At the same time, greater integration can increase system complexity and create reliability requirements around the complete e-axle assembly.

Therefore, future e-axle development will need to balance compactness, efficiency, power density, thermal management, durability, and cost.

Affordable Localized E-Axles Could Unlock Mass Adoption

One of the biggest opportunities in the market is the development of affordable, locally manufactured, modular e-axle systems.

South-East Asia has a large two-wheeler population, while EV penetration still provides substantial room for growth. This creates a significant opportunity for suppliers that can offer cost-effective powertrain systems tailored to local vehicle platforms.

Urban mobility, last-mile delivery, and personal transportation can all support demand for electric two-wheelers and their associated powertrain technologies.

Key E-Axle Companies to Watch

The current MarketsandMarkets report identifies several important players in the South-East Asian two-wheeler e-axle ecosystem, including:

• Musashi Seimitsu Industry Co., Ltd.
• Toyota Tsusho Corporation
• JK Fenner
• Delta Electronics
• Rotontek

These companies are participating across areas including integrated e-axles, electric powertrain components, manufacturing, technology development, and regional supply-chain expansion.

Recent Developments Are Accelerating E-Axle Localization

Recent industry developments highlight the increasing focus on partnerships and regional production.

In June 2025, JK Fenner entered a technology partnership with Korea's NMC Motors to develop and manufacture e-axles, initially targeting electric three-wheelers and small commercial vehicles, with plans for future expansion into two-wheelers and four-wheelers.

In January 2024, Musashi announced expansion of its integrated e-axle production line in Vietnam to address growing regional demand for high-efficiency powertrain modules.

These developments point toward a broader trend: e-axle suppliers are increasingly combining technology partnerships with localized manufacturing to support regional EV growth.

What Comes Next for South-East Asia's Two-Wheeler E-Axle Market?

The next phase of electric two-wheeler development will increasingly focus on powertrain integration rather than simply increasing battery capacity.

Compact e-axles can help OEMs simplify vehicle architecture, reduce mechanical complexity, improve efficiency, and control production costs. At the same time, localization can strengthen supply chains and make electric two-wheelers more competitive in price-sensitive markets.

With the South-East Asia two-wheeler e-axle market projected to grow from USD 227 million in 2025 to USD 584 million by 2032, the opportunity is moving toward scalable and localized powertrain platforms.

The future of electric two-wheelers may depend not only on better batteries, but on smarter, lighter, and more integrated powertrains.