Hitachi to start production of EV motors in China by 2020

Hitachi Automotive Electric Motor Systems, the JV between Japanese technology group Hitachi and Honda Motor, has set up a facility in Guandong province, China for developing and producing motors for electric cars, including hybrids, says Nikkei.

The JV that was formed in July, 2017 sees Hitachi holding a majority stake of 51 percent, while Honda controls 49 percent, with a combined total investment of $44 million (Rs 277 crore). It will produce high-spec electric motors, sufficient for Honda’s in-house consumption, as well as for supply to other automotive companies, which are working on electric vehicles.

The latest announcement reveals the company's plans to start production of electrified-automobile motors in China as soon as fiscal 2020, with an aim to capitalise on the Chinese government’s initiative there to boost production of environmentally friendly vehicles.

The report says that the company has not mentioned the initial production capacity but revealed that the production facilities will be built on an 88,000 square meter plot. The plant will start production in the fiscal year starting April 2020.

According to the China's new proposed policy, automakers in the country will soon be required to make and sell a minimum number of so-called new-energy vehicles based on their overall output. And these vehicles must account for a minimum of 10 percent of total cars produced by the company in 2019 and 12 percent in 2020, with adjustments made for such factors as models that run for longer distances.

The Nikkei report concludes that Hitachi Automotive Systems aims to increase its sales by 260 percent for its automotive lithium-ion battery systems in fiscal 2020.