PSA Group and Nidec Corporation through Nidec Leroy-Somer Holdings are working together to set up a joint venture that will work towards developing electric powertrains. The joint venture agreement, which will see both partners hold a 50 percent stake with a combined investment of Euro 220 million (Rs 1,681 crore), was signed on December 4, 2017. 

The PSA Group is working towards making France its strategic choice for design and production of the main components of the electric powertrain. 

The partners will work towards developing high-performance and competitive electric traction motor range for electrified vehicles (mild-hybrid (MHEV), electric vehicles (EVs) and plug-in hybrid (PHEV) and will supply the powertrain to PSA Group and other OEMs. It will also engage in R&D, manufacturing and sale of high-performance electric traction motors by combining PSA’s automotive OEM strengths and Nidec Leroy-Somer’s expertise of motor and related electrical equipment.

OEMs worldwide are accelerating their shift towards electrified vehicle technologies. Along with this trend, electrification of automobiles has been expanding and the market of electric motor for automotive is foreseen to double its size to JPY 6 trillion (Rs 312,000 crore) in 2030.

Nidec has been actively developing a new growth platform with particular focus on automotive business. In its midterm strategic goal Vision 2020, it has targeted achieving JPY 700 billion to 1 trillion (Rs 36,400 crore to Rs 52,000 crore) of sales in the automotive sector in 2020. The company acquired Nidec Leroy-Somer in February 2017.

As is known, the PSA Group under its ‘Push to Pass’ strategy is focussing on diversifying its technological offering with plug-in hybrid petrol engines and next-generation electric powertrains.