Nidec ends China EV joint venture

Nidec said on May 17 that it had ended a China electric-vehicle joint venture, according to a company statement summarized in a social-media post over the weekend. The move adds to signs that foreign auto suppliers are reassessing China operations as a multi-year price war squeezes margins across the country's EV market. Nidec did not disclose financial terms for the exit in the statement cited online. The company has not posted a detailed English-language release on its main news page as of May 18. ### Which joint venture did Nidec say it had ended? Nidec announced on Aug. 1, 2019 that it would form a joint venture with GAC Components Co., Ltd., a subsidiary of Guangzhou Automobile Group, to make automotive traction motors in China. Nidec said at the time the venture would develop, manufacture and sell low-cost, high-efficiency traction motors mainly for Guangzhou Automobile Group and later for other carmakers. (qcc.com) The Chinese company registry entry for Guangzhou Nidec Auto Drive System Co., Ltd. shows registered capital of 600 million yuan, with Nidec holding 51% and GAC Components holding 49%. The company was established on Oct. 30, 2019 in Guangzhou, according to the registry listing. ### Why is this notable now? China's EV market has remained intensely competitive in 2026, with manufacturers and suppliers facing pressure from weak domestic demand and a prolonged price war. (nidec.com) Reuters reported on April 23 that China's car sales fell 18% in the first quarter from a year earlier and quoted analysts saying automakers were increasingly looking overseas for margins and growth. (qcc.com) Reuters also reported on April 24 that BYD's domestic sales had fallen for seven straight months amid what it described as a bruising price war and intensifying competition from local rivals. Those conditions have put added pressure on suppliers tied to local production programs, especially in lower-margin EV components. (money.usnews.com) ### Didn't Nidec just deepen its China EV manufacturing push? Nidec President Mitsuya Kishida said in a July 2025 interview that the company had built an almost entirely made-in-China E-axle motor to support Toyota in the market. Bloomberg reported at the time that about 99% of the materials and parts in the motor were sourced from China, underscoring how far Nidec had pushed localization to stay competitive there. (money.usnews.com) The contrast is that Nidec appears to be narrowing, not abandoning, its China EV exposure. The GAC-linked venture's registry entry still showed the company as active on May 14, even as the May 17 statement said the joint venture had been ended; that suggests the corporate unwind and any registration changes may still be working through formal procedures. That is an inference based on the timing of the company statement and the registry status. (bloomberg.com) ### What has Nidec said publicly about the financial impact? Nidec did not provide financial figures in the May 17 statement referenced in the social-media summary. The company's English-language news page does not currently show a matching detailed release for the move, and its investor-relations calendar lists no separate event tied to the joint-venture exit. Nidec has, however, continued to flag broader corporate and governance matters in recent months, including delayed financial disclosures and reform briefings posted on its news and IR pages. (qcc.com) Those disclosures do not, based on the materials reviewed, spell out a quantified impact from the China venture decision. ### What should readers watch next? Nidec's investor-relations calendar lists its annual general meeting for June 18, 2026. (nidec.com) That meeting, or subsequent filings, would be the next formal venue where the company could address the China venture exit, any restructuring costs, or changes to its EV motor strategy with named shareholders and executives present. (nidec.com)