Nidec Plans to Focus on EV Powertrains
According to unconfirmed reports, the Japanese company Nidec Corp expects to significantly increase its earnings over the next 5 years by strengthening its presence on the automotive market via significant investments into production of powertrain solutions for EVs and takeovers of businesses specialized in e-motor solutions.
Reuters, citing unnamed sources familiar with Nidec plans, says that in the coming years the company intends to significantly increase the share of income from the sale of e-motors and integrated solutions for the auto industry. If we are talking about specific numbers, it is claimed that Nidec’s plan is to increase the annual earnings up to $46 bln in 5 years. The EV niche is expected to become one of Nidec’s main sources of revenue growth.
Nidec’s powertrain E-axle
Another important direction for further growth in the automotive business is to optimize production processes related to powertrain (also referred as e-axles) solutions for EVs. The company plans to boost the quality and operating characteristics of its e-axles, making them more effective, compact and thus cheaper. In December last year, former Nissan Deputy Director of Operations Jun Seki joined Nidec as president of the corporation. This step further emphasizes the company’s focus on the needs of the automotive market.
Nidec already produces xEV powertrains, including e-motors, power electronics and gearboxes in volume. In Europe, the company closely collaborates with PSA Group, which opened its e-powertrain assembly line at the Trémery engine plant in France at the end of last year. Nidec is an important partner in this initiative. In China, Nidec is providing e-axle solutions to GAC's Aion S all-electric sedan. Nidec and GAC also have entered into a joint-venture agreement to produce the e-axles in China. Nidec is expected to become a serious competitor to major e-axle providers such as Germany’s Bosch and ZF.
Learn more about Nidec and its products
It is predicted that production vehicles based on environmentally-friendly technologies will reach 13.3 mln in 2026. Automotive analysts report that the key objective for Nidec will be to get costs of e-axles down to roughly $1,500 or below from the current $2,000, while also enhancing their performance characteristics.
