Yamaha Acquires Brose’s Electric Bike Drive Business in Strategic Move

Yamaha Acquires Brose’s Electric Bike Drive Business in Strategic Move

In a strategic move in the electric bike industry, Yamaha has acquired Brose’s electric bike drive business. The German manufacturer, Brose, known for its automotive supplies, has decided to sell its electric drive business for e-bikes to Yamaha. This transition marks the end of Brose’s decade-long involvement in the bicycle industry. The acquisition, pending approval from antitrust authorities, will see the integration of the Brose unit into Yamaha’s subsidiary, Motor eBike Systems GmbH.

Brose, with its 110 employees based in Berlin, will now be under the umbrella of the Japanese company. The specific details of the acquisition price remain undisclosed by both parties. The sale aligns with Brose’s strategic realignment, focusing on its core automotive business. Brose’s presence in the bike market has been notable, particularly in developing drive systems for electric mountain bikes since 2014. Industry experts have noted that Brose held a market share of approximately seven percent, positioning it behind major players like Bosch, Shimano, and Bafang but ahead of Yamaha, which occupied the fifth position.

Yamaha’s interest in acquiring Brose’s electric bike drive business stems from leveraging Brose’s development resources within the e-bike sector and establishing its own development base in Europe. This move aims to enhance market responsiveness, cater to local customer preferences, and expand its customer base. Additionally, Yamaha seeks to bolster its procurement activities in the crucial European market and enhance operational efficiency.

Raymond Mutz, Executive Vice President of Drives at the Brose Group, expressed confidence in Yamaha’s capability to drive the business forward successfully. The proceeds from the sale will enable Brose to address its current economic challenges, a common struggle faced by many automotive suppliers. Brose recently projected a significant loss and announced plans to reduce its workforce in Germany by 700 employees by the end of 2025. The decision to sell its e-bike drive unit was not anticipated earlier.

For Yamaha, this acquisition is not the first foray into acquiring specialized engine expertise in Germany. In 2024, the Japanese group finalized the acquisition of Torqeedo, a renowned electric boat drive specialist previously under Cologne-based engine manufacturer Deutz.

The acquisition of Brose’s electric bike drive business by Yamaha signifies a significant strategic shift in the electric bike industry landscape. Yamaha’s aim to integrate Brose’s expertise and resources highlights a commitment to innovation and market expansion in the evolving e-bike sector. This move is poised to reshape Yamaha’s presence and competitiveness in the electric bike market, setting the stage for enhanced product development and market responsiveness.