Mitsubishi Electric and major auto-parts supplier Aisin say they have reached a basic agreement to set up a joint venture that will develop and manufacture products for next-generation EVs.

Mitsubishi, one of its subsidiaries in the automotive equipment business, and Aisin say the new company will supply motors and other components for electric and plug-in hybrid vehicles.

The Mitsubishi side plans to hold a 66 percent stake in the venture and Aisin the rest.

The corporate giant spun off its car-parts business last month. Some operations will be separated and taken over by the new firm.

Mitsubishi's strengths are in power devices and invertors.

Aisin supplies electric units, including major motor-combined components that power EVs.

The Japanese companies hope their tie-up boosts their competitiveness in a rapidly developing industry.