Following two groundbreaking ceremonies in India within three months, Japan-based Nidec expressed its optimism about India and is looking to build more plants in the coming years.
Hiroshi Kobe, the president of Nidec, told Nikkei that the company is contemplating the construction of one or two extra facilities in India as early as 2025, aiming to capitalize on the rising demand for electric motorcycles, air conditioners, and various other electronic devices.
On December 20, Nidec held an opening ceremony for a new second building in Nidec India's existing factory in Neeramana, Rajasthan. The first building produces automotive, appliance, commercial, and industrial motors, and the second building will manufacture drive motors for electric bikes with an output of 30kW or less. In September, Nidec held a groundbreaking ceremony for a US$55 million project at the Kotur-Belur Industrial Area of Hubli-Dharwad, Karnataka.
NHK, citing a survey by the Japan Bank for International Corporation (JBIC), reported that Japan-based companies view India as the most favorable overseas investment destination for the second straight year, with 48.6% of respondents expressing their optimism about India, followed by 30.1% for Vietnam, and 28.4% for China. The figure for China was the lowest since the survey began in 1992.
The report cited Kawakami Nao, Director General of JBIC's Strategic Research Department, emphasizing India's active push for infrastructure, and with an ongoing rise in population, there remain opportunities for domestic demand to increase. Japan-based companies are optimistic about these prospects.
Meanwhile, Nikkei quoted Shinichi Itagaki, director of JBIC's Strategic Research Department, saying that the deterioration of China's investment environments contributed to India's strong performance in the survey.
