Nidec Corp. will invest 10 billion yen ($66.4 million) to build its ninth factory in India, targeting the country’s expanding automotive sector with electrical component motors rather than its struggling electric vehicle systems, Nikkei reported.
The Japanese motor manufacturer plans to construct a 13,000-square-meter facility in Rajasthan, starting operations in 2027. The plant will produce 11 million units annually of motors for power steering, brake systems, and pumps, employing about 600 workers.
The strategic shift comes after Nidec’s EV operations faced profitability challenges, particularly from Chinese competitors’ pricing pressure. The company recorded 60 billion yen in restructuring costs last fiscal year, prompting a retreat from its E-Axle traction motor system strategy in India.
India’s vehicle market, which surpassed Japan in 2022, sold 5.08 million passenger and commercial vehicles in 2023, ranking third globally behind China and the U.S. Nidec President Mitsuya Kishida indicated the company aims to capture market share through rapid delivery capabilities.
The company is also completing an 8 billion yen motor factory in Karnataka, scheduled to begin production in April 2024. The facility will supply components to local manufacturers including Ashok Leyland.
