Hitachi has announced that it will start developing and producing electrified automobile motors in China as soon as fiscal 2020.
The Japanese multinational conglomerate is vying to capitalize on a Chinese government initiative to boost production of environmentally friendly vehicles.
Hitachi Automotive Electric Motor Systems, a joint venture of Hitachi Automotive Systems and the Honda Motor company, established a unit in Guangdong Province on Friday dedicated to the development and production of motors for electrified vehicles, including hybrids
Hitachi has nevertheless remained tight-lipped about the capacity and outlays for the production facilities, which will be built on an 88,000-sq.-meter plot, reports the Nikkei Asian Review. Mass production may kick off in the fiscal year starting from April 2020. Hitachi also operates similar sites in Japan and the U.S.
Under the new Chinese government initiative, automakers will soon be required to make and sell a minimum number of so-called new-energy vehicles based their overall output. These vehicles must account for 10% of production in 2019 and 12% in 2020, with adjustments made for such factors as models that run for longer distances.
Many global auto manufacturers have already indicated plans to upgrade their new-energy vehicle businesses in China.
Hitachi Automotive Systems, which also makes lithium-ion battery systems for autos, hopes to capitalize on this venture by striving to increase sales 260% in fiscal 2020 from the fiscal 2016 level.
Image and content: Hitachi/Nikkei Asian Review