Nippon Electric Co., Ltd. will cooperate with GAC to develop and produce pure electric motor

According to “Nihon Keizai Shimbun” reported on August 2, Japan Electric Power Co., Ltd. announced on August 1 that it will establish a joint venture with a subsidiary of China’s large automaker Guangzhou Automobile Group in China. Development and production of traction motors for pure electric vehicles (EV). The capital is 600 million yuan. Japan’s electricity production is 51%, while Guangzhou Automobile’s company contributes 49%. Through the establishment of the joint venture company, Nidec will enhance its presence in the Chinese pure electric vehicle market, which is valued as a growth area.

Co-financed with Nidec Corporation is Guangzhou Automobile Group Parts Co., Ltd. (Guangzhou), which is part of the Guangzhou Automobile Group and is involved in automotive interior parts and electrical components. After obtaining regulatory approval, it plans to set up a new company by October. The new company is involved in the development, production and sales of traction motors and their components, and is also responsible for after-sales service. Not only the Guangzhou Automobile Group, but also the sales to automobile manufacturers in China and abroad. The establishment of the joint venture company is also intended to increase the number of Chinese technicians.
Nidec Corporation is striving to achieve 2 trillion yen in operating income in 2020. Among them, the revenue from the in-vehicle-related business is set at 700 billion-1 trillion yen, positioning the automotive motor business as a growth area.

Post time: Aug-12-2019