Nidec appears to have set its eyes on tripling its revenue by focusing on electric vehicles and motor technologies over the next five years. Its plans are to be known to the public by Tuesday as the maker of precision motors and suppliers of parts used by apple prepares to expand. After having a reduction in demand for parts, the Kyoto based firm is changing its course to electric vehicle manufacturing. Their main target is getting a considerable market share in the production and sale of electric cars.
A source from Nidec is said to have said that the production of the EV motor system will be a crucial strategy for their growth. Their primary focus will be the production f the integrated EV powertrain system. Such a system brings together power electronics, motors, and transmissions. Apart from the production of the e-axles, they are set to increase their profitability through mergers and acquisitions. Nidec has targeted on merging and acquiring other producers or manufacturers of these components in the market. Such a decision will have extended their sales and revenues considerably.
The company targets having an increase in its revenues to considerable levels of 5 trillion yen when it gets to 2025. The founder and CEO Shigenobu Nagamori had in the past quoted to get their revenue levels at 10 trillion yen each year. It is clear that this introduction will be focused on achieving the same goal. The company has already been in the business supplying French and china with their e-axles.
Nidec is after increasing the quality of its products while also cutting on the costs involved in their making to affordable or cheaper values. Through the use of mergers and acquisitions, the company plans on reaching substantial levels to meet the enormous revenue targets they have set. Its eyes on acquiring and merging with startups and major tech labs as they pursue their goal. Sources also indicate that the company will be spending close to 500 billion yens as they focus on growth strategies.
This company is after taking control of a substantial part of the market. Nidec understands the need to focus on technology and changes in EV as they understand that it will have to change over time. Its eyes are on improving the quality that they offer to increase the sales they make and thus build on their customer base. Having bitten competition, they will have reached their revenue goals.