Japanese electric vehicle (EV) motor company Nidec cut its entire year operating profit forecast by nearly a fifth on Wednesday. This new step raises a warning of uncertainty in demand and intensifying price competition in the Chinese EV market.
Nidec’s prime product e-axle traction motor business is facing tough challenges in the EV industry including the price war from competitors.
The firm has cut its operating profit forecast for the financial year to March 31 by 18% to 180 billion yen ($1.22 billion) compared to the average forecast of 219.7 billion yen from 18 analysts surveyed by LSEG.
It is said that the company was heavily dependent on Chinese partners to sell its flagship EV motor product.
(via – CNBC)