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Nidec Expands in India with New Plants, Aims to Boost Local Electric and Electronics Market

Nidec's Strategic Move Includes Production of Air Conditioner Parts and Electric Motorcycles, Focusing on Local Demand
n 6594.TSE Blue Chip 150
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Japanese motor manufacturer Nidec is set to enhance its presence in India with plans to construct additional factories. This expansion aims to cater to the growing demand for electric motorcycles, air conditioners, and other electronic products in the region. Hiroshi Kobe, President and Chief Operating Officer at Nidec, highlighted the company’s strategy to capitalize on India’s burgeoning domestic production capabilities.

Kobe anticipates a significant increase in Nidec’s Indian operations starting around 2025. This forecast follows his recent visit to India, where he explored potential joint ventures with local companies. Nidec’s commitment to the Indian market is underscored by the ongoing construction of its fourth plant in Karnataka, which is slated to commence operations in 2025. This facility will focus on manufacturing motors for generators among other products.

The company is not only expanding its manufacturing footprint but also diversifying its product line. Kobe mentioned the consideration of producing air conditioner parts in response to the rapid influx of foreign air conditioner manufacturers in the Indian market.

In addition to its manufacturing expansion, Nidec is undergoing a transformation in its management structure. The company is transitioning to a new system where an external committee, rather than the traditional method of internal selection, will appoint the next president. This move is part of Nidec’s broader effort to enhance governance and shift away from the practice of founder Shigenobu Nagamori handpicking successors. The process has been challenging, marked by the departure of several candidates, including a former CEO from Nissan Motor. Kobe emphasized the balanced evaluation of the five current vice presidents being considered for the role, with the decision resting in the hands of the nominating committee.

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