Japan Nidec to set up EV traction motor production in Dalian, China to seek growth
TOKYO, NNA - Nidec Corp., a Japanese electric motors manufacturer, will spend 100 billion yen ($921 million) to set up a production line to develop and make electric vehicle traction motors in a factory which is being built in Dalian, China as the company seeks to expand their business in the local market.
Operations are expected to commence sometime in 2021 with around 1,000 employees, of which 300 to 400 will be dedicated to the EV traction motors production, a spokesman for Nidec told NNA Thursday.
“We have expanded our presence in the market. Unlike Japan, China is vast, and we have to be close to our customers,” he said.
In the coming few years, Nidec hopes to increase the number of EV related engineers in China from 100 to 650.
On May 27, Nidec said the electric vehicle recently introduced by Geely Automobile Holdings Ltd., a subsidiary of Zhejiang Geely Holding Group Co., will have Nidec’s fully integrated traction motor system E-Axle.
Nidec sees EV traction motors as a key growth area and has set a goal to expand the business to produce 10 million units of traction motors by fiscal year 2030.
The latest news follows Nidec’s announcement in August last year that it had formed Guangzhou Nidec Auto Drive System Co., a joint venture with GAC Components Co., a subsidiary of Guangzhou Automobile Group Co. to develop and manufacture automotive traction motors. The joint venture is based in Guangzhou, the southern province of Guangdong.
GAC, which has joint ventures with Toyota Motor Corp. and Honda Motor Co., at that time had the sixth-largest market share in the increasingly environmentally strict China, Nidec said then.