Nidec Sees ‘Ocean of Red’ in China’s Competitive EV Market
- Kyoto-based Tesla supplier slashes outlook and eyes cost cuts
- Maker of EV motors has been struggling amid market malaise
An employee on the automobile electrical servo motor production line at the Nidec Electric Motor Serbia d.o.o. plant in Novi Sad, Serbia.
Photographer: Oliver Bunic/BloombergThis article is for subscribers only.
Tesla Inc. supplier and motors maker Nidec Corp. slashed its full-year operating income guidance by almost 20% on what its chairman said was “an ocean of red” in China’s electric-vehicle market.
Prices are plunging below cost due to fierce competition in China, where more than half of the world’s EVs are produced, threatening the market’s price-discovery mechanism, according to Nidec co-founder Shigenobu Nagamori.