Nidec Bets Big on EV Traction Motors as Asian Manufacturers Ready for the EV Revolution

DUBAI--(Korea Newswire)--Asian EV traction motor manufacturers will further consolidate their market positon, with over US$ 1.3 billion worth sales in China alone in 2021, finds a new report by Fact.MR. According to the study, Asian manufacturers, especially Japanese electric motor giant Nidec, are likely to invest heavily in EV traction motors during 2020-2030.

Globally, EV traction motor market continues to rely heavily on innovation, as electrification of automotive industry is growing. The Fact.MR study opines that existing motor manufacturers will enter into agreements and partnerships, and the market will witness foray of new players.

“Automotive electrification will create opportunities for motor manufacturers. There will be a shift toward components that are aligned with EVs”, says the lead analyst at Fact.MR.

Capacity Expansion will Remain a Key Strategy for EV Traction Motor Companies

The Fact.MR report finds that Japanese and South Korean manufacturers will gain opportunities with regard to exports of EV traction motors. To ready for the anticipated hike in demand, these motor manufacturers are investing in new plants and expansion of the existing ones. A key strategy is to open manufacturing units in countries with competitive labor and conducive business atmosphere.

For instance, Mitsui & Co., in a joint venture TEMICO, is planning to produce 110,000 high-efficiency motors per year through its US$ 14 million plant in India.

The Fact.MR study points that Nidec will likely grab a leading share of EV traction motors, owing to a sheer investment and the past reputation. The company currently holds a market share of nearly 50% in brushless motors.

Further, the company has made overtures in the past to become the preferred supplier to Tesla, the company at forefront of EV revolution. Nidec already has agreements with China’s Guangzhou, a key EV manufacturer in Asia.

Building Low-cost EV Traction Motors at Scale - The Winning Mantra

According to the Fact.MR study, producing low-cost EV traction motors at scale will remain the winning strategy for the existing companies and new market aspirants. The growth will be supported in part due to growing government mandates and clamor for shift to EVs.

According to Fact.MR Intelligence, competition in the EV traction motor market is not limited to the existing motor manufacturers - EV OEMs such as Tesla, Nissan, and General Motors are building their own propertiary E-axle systems. The in-house production of traction motors can mean that specialist motor manufacturers and suppliers will need to keep prices relatively low to make further inroads.

Asian EV traction motor manufacturers will come to play a key role in the shift toward non-gasoline automobiles. According to the Fact.MR report, nearly 40% of traction motor suppliers are based in Asia. Low-cost offerings give Asian suppliers an advantage, however, protectionist policies and trade agreements can curtail this.

IMs will Outsell PMSM and SRMs

Among the various types of EV traction motors - permanent magnet synchronous motors (PMSM), induction/asynchronous motors (IM), hybrid motors, and switched reluctance motor (SRM), demand for IM will be the highest in Asia. The operational safety of IMs and rugged physical structure makes them a preferred option for OEMs.

The Fact.MR study offers a holistic analysis on Asian EV traction motors market, presenting sales and revenue forecasts in key countries. EV traction motor sales in Japan, India, China, South Korea, Taiwan, and ASEAN are available in the study. The study also includes COVID-19 analysis on automotive component industry in general and EV traction motors in particular.

Key Questions Answered by the Study

· How many EV traction motors are sold in Asia?
· What is the market share of Nidec, Bosch, Parker-Hannifin Corp and other Tier 1 players?
· Where will new EV traction motor manufacturing units come up and what will be their capacity?
· Will OEM focus on developing proprietary E-axle hurt EV traction motor companies?
· How will average price of EV traction motors decrease during 2020-2030

About Fact.MR

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