Astemo’s overseas demonstration project utilizing DX and AI for producing motorcycle brake control systems selected for METI subsidy program

Tokyo, April 27, 2026 – Astemo, Ltd. (hereafter “Astemo”), together with its Indian subsidiaries, Astemo India Pvt. Ltd. and Astemo FIE Pvt. Ltd., has been selected by Japan’s Ministry of Economy, Trade and Industry (hereafter “METI”) to receive subsidies for the project titled “Overseas production demonstration of India-/Japan-quality ABS and employment measures through DX^*1 and AI business verification.” The selection came as a result of applying for the second public call of METI’s FY2024 Supplementary Budget Subsidy for “Global South Future-Oriented Co-Creation Projects” (Large-Scale Demonstration Projects for Non-ASEAN Countries).

• *1

  DX: Digital Transformation

In recent years, amid international targets endorsed by organizations such as the WHO^*2—including the goal of halving the number of road traffic fatalities and injuries worldwide by 2030 compared with 2020 levels^*3—there has been growing attention on improving the safety performance not only of four-wheeled vehicles, but also motorcycles. In response to these trends, Astemo has been proactively working to increase the penetration of ABS-equipped motorcycles across countries in the Global South at an early stage, enhancing motorcycle safety by locally producing motorcycle brake control systems (ABS^*4) in Vietnam and Indonesia.

• *2

  WHO: World Health Organization

• *3

  Global Plan for the Decade of Action for Road Safety 2021–2030 (UN General Assembly Resolution A/RES/74/299)

• *4

  ABS: Anti-lock Brake System

Against this backdrop of global momentum toward improved road safety, the motorcycle market is expanding rapidly in India, —where the motorcycle market is rapidly expanding—has been strengthening regulatory measures aimed at enhancing motorcycle safety, with the mandatory installation of ABS expected to be applied to all motorcycles. While expected to drive a significant increase in demand for motorcycle ABS in India, the mandate poses challenges in maintaining high product quality under the mass production requirements for existing production management frameworks. To address these challenges in the Indian market, Astemo will launch a demonstration project utilizing the METI subsidies, which aims to establish an advanced production and maintenance system for the mass-production lines of motorcycle ABS. By automating production equipment and integrating DX and AI technologies with hardware systems, the initiative aims to suppress quality defects caused by variability in human judgment, while simultaneously achieving both high-quality manufacturing and efficient equipment maintenance. Building on Astemo’s proven track record of overseas local ABS production in Vietnam and Indonesia, this project represents a further evolution by leveraging DX and AI technologies to dramatically enhance quality and productivity.

Responding to the sharp increase in ABS demand expected from India’s future ABS installation mandate requires the establishment of large-scale production capacity and a DX- and AI-enabled manufacturing platform. This in turn necessitates an unprecedented level of initial investment and a long investment recovery period. These factors have posed a significant hurdle for standalone private-sector investments. Through this newly secured support from METI, Astemo will be able to swiftly advance the demonstration project and achieve earlier market deployment ahead of major overseas competitors. As a result, Astemo aims to establish a competitive advantage in the rapidly growing Indian market, pursuing the creation of a large-scale smart factory powered by DX and AI, and thereby generating new employment opportunities. Furthermore, Astemo is also considering applying this business model to factories in other countries, with different production scales and operational environments.

Through this project, Astemo will contribute to improving motorcycle safety while striving to establish a next-generation manufacturing model leveraging DX and AI. Looking ahead, Astemo will continue to support customers’ efforts to address social challenges in global markets, while pursuing sustainable business growth.