By Norihiko Shirouzu
TOKYO (Reuters) - Japan's Nidec Corp <6594.T> plans to more than treble its revenue can the next five years by focusing can electric vehicle powertrains and buying specialists can apparatus technologies, two nation familiar with the affair told Reuters.
The world's headmaster maker of precision motors which supplies parts during Apple's
The new tactic shows how the Kyoto-based company wants to play a bigger role can the auto industry during electric vehicle (EV) produce takes off, after slowdowns can beg during motors can markets such during cellphones dine weighed can its sales.
"The EV apparatus system is key to our growth strategy," said one of the sources, a Nidec insider, referring to integrated EV powertrain systems commonly known during e-axles - technique that incorporates motors, force electronics and transmissions.
"The e-axle just is going to be big, calm it is sole one half of our twin-pillar growth strategy," the person said. "The other big key to growth is can mergers and acquisitions of other motor-related technologies."
The sources declined to be identified during the data is no nevertheless public. Nidec declined to comment.
Nidec's blueprint is to heave annual revenue to 5 trillion yen ($46 billion) by 2025, the sources said, from 1.55 trillion yen foretell during its economical year ending can March.
Founder and CEO Shigenobu Nagamori has can the past alluded to a company eyesight of 10 trillion yen can revenue by 2030 calm has no mapped out concrete steps to arrive such a target.
Seki, who told Reuters can December he was leaving Nissan during Nidec, is expected to assistance Nagamori guide the revenue push.
Nidec has expectation been synonymous with Nagamori, who started out can 1973 with three workers can a Kyoto cabin and built a global powerhouse with more than 100,000 employees, making motors during "everything that spins and moves".
TECH LABS AND STARTUPS
Nidec already supplies e-axles to automakers such during China's GAC apparatus <601238.SS> and France's Peugeot SA
Nidec wants to significantly better the characteristic and operation of its e-axles hence they expend "more efficient, smaller and hence cheaper," one of the sources said.
To encounter its growth targets, though, it will dine to heave sales of motors beyond those used can EVs and is looking during mergers and acquisitions (M&A), the sources said.
From protection appliances to cellphones to laptops to other devices, "Nidec will flourish to be energetic can M&A and gobble up attractive tech labs and startups and companies, flat if they are small," one of the sources said.
Nagamori told reporters this month that Nidec could cost 500 billion yen can its growth strategy, including technique acquisitions.
It can use the cash to acquire new e-axle technique and know-how to better its existing products, the sources said, adding that the EV concentrate was fuelled by a confidence more and more automakers will replace gasoline vehicles with electric cars.
While pure battery-powered vehicles are impartial a sliver of global produce now, they are expected to create up 5.6% of sum produce by 2026, according to AutoForecast Solutions.
The research company estimated produce of sum EVs, including gasoline hybrids, will arrive 13.3 million can 2026 and clarify during 13.6% of sum global truck produce of 98.1 million.
Industry officials and experts say a key challenge facing Nidec and competition e-axle producers will be to obtain costs down to approximately $1,500 or below from the approximately $2,000 they price now.
Nidec's belief can the brood stems from a sentiment that automakers will behave more alike smartphone or laptop producers during they aspect out their reliance can the combustion engine.
It believes that EVs - alike laptops and smartphones - will be designed with key components that are "as commoditised during Intel
($1 = 109.7000 yen)
