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Brose – the Coburg, Germany-headquartered business that is the exclusive provider of e-bike motors for Specialized and partner for SRAM Powertrain – has agreed the sale of its e-bike business unit to Yamaha Motor.
The announcement confirms that “Yamaha Motor has signed an agreement with Brose, a German automotive parts manufacturer, to acquire its bicycle drive unit (eKit) business subsidiary”.
The formalisation of the operation is scheduled to be completed by June 2025, premised on the obtainment of clearances, permits, etc., required by competition laws and applicable regulations.
Yamaha in Europe
Alongside this acquisition, “a new Yamaha subsidiary has been established this month in Germany, named Yamaha Motor eBike Systems (YMESG)”.The new facility, which will begin operating in June, will allow Yamaha to build market presence and expand the business’ operations whilst enhancing its efforts in green mobility.
The German location adds to Yamaha’s European manufacturing footprint with the business establishing a French e-bike motor manufacturing capability in 2022. At the time of this news, Mark Sutton reported, “Yamaha has announced that its eBike motor production will shift to a new wholly-owned MBK Industrie facility based in France, marking the announcement with detail on its new PWseries S2 drive unit.”
The future of Brose technology with Yamaha
Yamaha will leverage Brose’s eKit development capabilities to further strengthen the planning and development of new products. Simultaneously, by having an additional production base in Europe, Yamaha will build an operation that can respond swiftly to local customer demands, giving it the capability to quickly grasp market needs, acquire new customers, and improve procurement competencies within the European market.
Additionally, the acquisition will enable Yamaha Motor to enhance its after-sales service expertise, ensuring customers local reliable support and satisfaction.
While directly linked to Yamaha in Japan, the new Yamaha company, YMESG, will work closely with its sister company, Yamaha Motor Europe, to serve the European market’s needs in a swift and adequate manner.
Strategic planning supporting long-term vision
The electrically power-assisted bicycle business, which is expected to see long-term growth, is a strategic line in Yamaha’s new Medium-Term Management Plan (2025–2027) announced in February 2025. This acquisition is part of its efforts to establish a unique position for competitiveness and to achieve business growth outlined in the new Medium-Term Management Plan.
Speaking following the announcement, Raymond Mutz, EVP Drives, Brose Group, said: We are convinced that Yamaha offers the best conditions to successfully develop the business further. At the same time, we would like to thank our employees for their commitment and dedication.
Industry insights
Sharing details via LinkedIn, Phillip M Lucas observes:
“Brose is projecting a €53M loss in 2024, with turnover slipping €200M across the whole entity at €7.7B. A major restructuring is underway—700 jobs cut, operations streamlined; a retreat back to core automotive activities is in play. Despite producing over two million e-bike drives and building a solid name in the space, the cycling division simply didn’t fit in their survival plan, and cycling’s momentary lull made it ripe for the cutting board.
Enter Yamaha.
“In 2023, Yamaha posted ¥2.4 trillion in revenue (approx. €15B), with operating income up 11.5%—record results. Their background? Not cars, but two wheels. Motorcycles, scooters, and yes—e-bikes. Yamaha has been in the pedal-assist development game since the 80s, culminating in the 1993 PAS eBike (Pedal Assist System, targeted on elderly mobility). This Brose acquisition fits naturally into their ecosystem and will allow them to lift their position compared to their fellow Japanese competitors, Shimano (whose eBike grass likely seemed enviably greener to Yamaha’s management)…”
Lucas further adds: “Strategically, this acquisition represents a wise move to strengthen Yamaha’s presence in the critical EU eBike market, where they hold just a 5% share. Despite its early pioneering role, the brand has struggled to gain European traction with many strong competitors. This move strengthens Yamahas product offering and adds Brose’s established ~7% share and brand to compete against Bosch (~40%?), Shimano(~20%?) Bafang (~15%?) and more. Yamaha’s recent opening of a plant in France underscores their awareness that the EU is a must-have marketplace for eBike motor manufacturers. ”
Image credit: Brose Group
