Nidec Corp 6594

Exit From the EV Traction Motor Business in China Drives Nidec’s Margin Expansion

Nidec is a global top supplier of brushless DC motors, which have advantages over other types of motors in energy efficiency, silence, and durability. Owing to their efficiency, the majority of demand for brushless DC motors currently comes from IT applications, and Nidec has established top share in various applications, such as hard disk drive motors, optical disk drive motors, vibration motors for handsets, fan motors, and so on. Furthermore, we expect that Nidec could capture demand from new applications and industries. As approximately half of the electricity generated globally is consumed by motors, the adoption of efficient motors will be necessary to meet environmental standards in many other industries in the near future. We believe that Nidec can leverage its expertise in small precision motors for IT applications and will benefit from increasing demand for brushless DC motors in new business opportunities, such as automobiles, robots, and air conditioners.