On May 18, it was reported that Nidec Corporation would drastically scale back its E-Axle EV drive system business and dissolve its joint venture with Chinese and European partners. E-Axle was once a flagship project strongly promoted by the company’s founder, Shigenobu Nagamori. Given that the Nagamori era fostered accounting irregularities and quality misconduct, the decision sends a significant message both inside and outside the company as a clear break from the Nagamori management line. That said, the E-Axle business had already been classified under the category of “Business Restructuring” in the company’s restructuring plan, “Toward Nidec Reform,” released on May 13. In essence, the move appears to be a rational management decision based on a careful assessment of the risks involved in continuing the business.

The E-Axle technology integrates EV’s drive system---the motor, inverter, and gear—into a single unit, thereby reducing size and weight while improving manufacturing efficiency. As is well known, however, China’s automotive motor market has become fiercely competitive on price. Meanwhile, the integration of vehicle components is evolving further. The ultimate example is the “Integrated Intelligent Chassis (CIIC),” a smart chassis system developed by Contemporary Amperex Technology Co., Limited (CATL). CIIC integrates the drive system, brakes, steering, battery, and control software into the chassis. According to reports, the upper body and the lower chassis are coupled and decoupled through signal-based control systems. In effect, a vehicle can be completed simply by mounting the cabin section onto the chassis.

Currently, major global automakers are reassessing their EV strategies. Behind this shift are stagnating global demand and overcapacity in China, the world’s largest EV market. Another contributing factor is the massive government subsidies that have undermined fair competition in the Chinese market. At the same time, however, fierce competition has undeniably accelerated technological innovation. This is evident not only in autonomous driving technologies but also in improvements in manufacturing productivity. The “CIIC” smart chassis concept, which allows the chassis and the upper vehicle body to be developed independently, can shorten the lead time from product planning to mass production to 12 months. Such advances cannot be achieved through incremental cost-cutting alone. Rather, they stem from a fundamentally innovative approach to the manufacturing process itself.

Amid intensifying competition in China’s domestic market, Chinese EV makers are seeking openings in overseas markets where EV demand is losing momentum. This summer, BYD will introduce electric kei car models (lightweight compact EVs) to the Japanese market. Dongfeng Motor Corporation, in partnership with Stellantis, is producing EVs under the “Peugeot” and “Jeep” brands for export to global markets. In 2027, Xiaomi Automobile, a subsidiary of a leading smartphone maker Xiaomi Communications, is set to launch a full-scale global expansion, beginning with Europe. Yet the barriers to success in mature markets remain high. Business models that proved effective in emerging markets in Asia, where the automotive industry itself is still developing, are unlikely to work in mature markets. Even so, these companies’ determination to bet on the future of the EV market and on the potential of their own technologies evokes something of the “founder’s ambition” to take on the world — the same spirit that once drove Nidec during its high-growth years.

Takashi Mizukoshi, the President
This Week’s Focus, May 17 – May 21, 2026