Europe is being seen as a growth area for automotive business for Tier 1 supplier Aisin, which announces an acceleration of its localized production strategy.

Despite working in European markets for more than 35 years, the Japan-based company attended the IAA Mobility 2025 to launch its drive for growth on the Continent via several auto innovations.

Those on display at the show in Munich includes its Blue Nexus 80-kW (107-hp) eAxle for the rear-wheel-drive component of battery-electric vehicles, created in partnership with BMW, while also committing to a multi-pathway powertrain approach to support internal-combustion-engine, hybrid and battery-electric applications to match consumer demand.

Also presented to attendees is the company’s one- and two-motor hybrid transmissions; thermal management technologies, including a range of standalone or integrated electric water pumps and cooling modules; and body and safety technologies including Aisin’s Intelligent Pillar Unit for keyless entry, Occupant Detection System by radar and its Cockpit Domain Controller for reduced driver distraction.

WardsAuto catches up with the company’s Julien Lancelle, European director of sales and supply chain, who spells out the new strategy driven by a higher focus on sustainability in the industry’s transition to electrified powertrains.

Localizing production can lower the company’s production CO2 emissions, and its main ambition is expanding its production capabilities on the Continent., he says. Currently Aisin has four production facilities in Europe and its plant in Belgium achieved net zero CO2 production at the end of 2024.

Amid the slowdown of consumer demand for BEVs, the company is shifting its focus to hybrid and plug-in hybrid powertrains, says Lancelle.

“We have in Europe many applications with hybrids and this was planned to fade out,” he says. “What we see today is that this is being extended, so we see some higher volume demand for hybrids” and the company is quickly reacting to this change in the market, Lancelle adds.

While he believes BEV technology will increasingly be adopted, at an albeit slower level, Aisin will continue to invest in ICE technologies.

“We still have a long way to go with combustion technology and there are still opportunities, and most people don't see combustion engines going anywhere soon,” Lancelle says.

He also believes the speed of transition to electric transportation will change by market, probably resulting in a divide between northern European markets and those in the south.

“That's what we see today – a clear, clear difference between north and south,” he says, adding: “For example, in some markets, like Greece, it looks virtually impossible to reach 100% BEV by 2035.”