Despite the lucrative businesses in high-end phone production, one tech company plans to venture into the manufacture of electric vehicles. Nidec Corporation, a tech firm that deals with iPhone products in Japan, decided to focus on automobile production. The company’s miniature motors integrated into iPhones helped it develop the Nidec 6594.T. With revolutionary technology, the company values $14 billion to ranks among Japan’s top-valued multi-billion-dollar corporations. The recent developments in the EV industry continue to attract investment from state governments and the public.
The substantial funding opportunities support initiatives that spearhead the electrification of the transportation sector. Technological advancements in the industry continue to help electric-automakers release new car models that are energy-efficient and affordable. Some EV manufacturers employ car customization to suit different social classes of consumer segments. The automakers produce both luxury and low-end electric vehicles, widening products’ scope for consumer demands in the EV market. The business opportunities vividly explain the increasing interest of upcoming electric car manufacturers like Nidec Corporation.
Shigenobu Nagamori, the founder of Nidec Corp., said that the company focuses on developing a technology that converts electrical charge in batteries into propulsion power for cars. The cutting-edge battery is a unique selling point for Nidec’s entry into the EV market. Nidec plans to unveil the E-axle technology to give it a competitive edge during its shift from the phone industry to the business of manufacturing electric vehicles. Shigenobu Nagamori said that the company aims to control 35% of E-axle’s global market, projecting a share worth $20-30 billion yearly by 2030. Currently, Nidec enjoys a market share of $2.8-$3 billion a year. Going by the statistics, the company must heavily invest in state-of-the-art infrastructure and production methods to sky-rocket the revenues from the current annual returns of $3 billion to nearly $30 billion in the next decade.
Nidec anticipates that the EV industry will take a similar route that manufacturers of air conditioners, computers, and other home appliances followed after their first-ever products entered the consumer market. The big-name tech companies standardized the architecture of critical components in most products, such as the CPU for computers. Nidec hopes the same will happen in the automotive manufacturing industry.
Nidec Corp’s founder aims to acquire insights for JATCO, a manufacturer of gears for Nissan Motor Co 7201.T, to integrate their technology with the company’s power-control electronics. Shigenobu’s strategy will develop a novel car system that improves the propulsion efficiency for electric vehicles. In summary, Nidec’s cutting-edge car technology is the ultimate prize that will help the company stand out in the market. One step closer to achieving the 35% global market share by 2030.