Nidec builds made-in-China EV motor to help Toyota catch rivals

Japan Times

16-07-2025

Japan's Nidec is building an almost totally "made-in-China' electric car motor to help Toyota compete in the world's largest auto market, according to Chief Executive Officer Mitsuya Kishida.
About 99% of the materials and parts in the E-axle motor are from China, said Nidec president Kishida. Building the integrated motor was "incredibly tough,' he said in an interview last week.
Nidec began supplying the motor for Toyota's electric bZ3X sport utility vehicle, which went on sale in March from about 110,000 yuan ($15,350), and has sold about 20,000 units so far, according to a Toyota spokesperson. The car — the first Toyota vehicle to use this motor — is part of the company's push to turn around its fate in the world's No. 2 economy, as Chinese carmakers capture market share from global rivals.
Using mostly Chinese parts allows the company to cut costs and helps reduce the price of the final car, which is necessary to compete in the Asian nation's ultra-competitive auto market.
The new motor is also aimed at reviving the fortunes of fellow Japanese company Nidec, whose poor profitability and falling stock price are fueling investor discontent.
Over the past five decades, the precision-motor manufacturer had sought growth through acquisitions, buying 75 companies and running about 250 factories, said Kishida, who earlier this year announced a restructure after taking the top job in 2024.
"Before we seek large growth in revenue we have to get our current business under control and get a more efficient structure,' he said at the opening of a new factory in Qingdao, northern China. The plant — which makes motors, compressors and electronics for home appliances — is an example of that, combining two older facilities from different business units in a new $100 million manufacturing hub.
That restructuring may include selling some businesses, Kishida said, adding this would improve the image of the company for shareholders and hopefully boost the stock price.
The Qingdao investment is a rare example of a Japanese company adding substantially to its presence in China, at a time when many others are cutting back as the nation's economic growth slows and global trade tensions rise. Net new Japanese investment into China was up about 3% in the first five months of this year, after rising about 6% last year, according to data from Japan's Finance Ministry.
Toyota is another firm bucking that trend, announcing a new factory in Shanghai for its Lexus brand in April, with that investment reported at around $2 billion. Kishida expressed confidence Nidec could also cooperate on that project, noting the company already supplies various other car parts to Toyota.