Japan’s Nidec [6594:JP] intends to invest JPY10bn (USD78m) to expand its electric vehicle (EV) business in India, as reported by Nikkei Asia on May 31. The investment will be dedicated to launching a new building at Nidec’s factory in western Rajasthan in India, increasing the output of motors for electric motorcycles and household appliances. By 2025, Nidec aims to produce more than 1m motors in India. The total floor space of Nidec’s facilities in the region will be increased to about 16,000 square meters with the addition of the new building. During the construction of the new facility, the company will also set up a new production line for wheel-integrated motors for small motorcycles and other items.

In 2015, India launched the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME) initiative to stimulate domestic EV development. According to the plan, the Indian government would invest INR100bn (USD1.29bn) from 2019 over five years to develop public electric charging stations, as well as subsidize 7,090 electric buses, 500,000 electric tricycles, 55,000 electric cars, and 1m electric motorcycles. India’s Minister of Road Transport and Highways also stated that sales of electric two-wheelers increased by 422% YoY from FY20 to FY21, while sales of diesel and gasoline cars have been steadily dropping in the country. In 2021, India’s diesel and gasoline car sales totaled 18.31m units, down 0.98% YoY.

Sources:

https://asia.nikkei.com/Business/Automobiles/Japan-s-Nidec-to-spend-78m-to-expand-EV-motor-production-in-India

https://www.icspec.com/news/article-details/1992586#

https://cn.nikkei.com/industry/icar/47998-2022-03-22-05-00-45.html

http://com.gd.gov.cn/go/article.php?typeid=38&contentId=21642