Japanese electric motor manufacturer Nidec plans to terminate its joint venture with GAC Group in China for the production of electric vehicle drive units known as "e-Axle." This integrated drive system combines components such as the motor and inverter and was once a key business segment for Nidec. The company stated that it has decided to exit this field and pursue structural reforms, as the EV traction motor market has become a fiercely competitive "red ocean." Nidec currently operates two joint ventures in this business area—one with GAC Group in China and another with Stellantis in Europe. The company has already begun discussions with GAC Group regarding its exit but has not yet initiated similar talks with Stellantis. Mitsuya Kishida, President and CEO of Nidec, said that although specific plans have not been finalized, the company intends to dissolve both joint ventures. Since 2014, Nidec has expanded its EV drive system business through the acquisition of Honda’s automotive electronic control unit subsidiary and, in 2019, Omron’s automotive components subsidiary. However, the segment’s profitability has continued to decline due to slowing global EV demand growth and intensifying price competition from Chinese domestic manufacturers. For the period from April to September 2025, Nidec recorded an impairment loss of JPY 87.7 billion related to its e-Axle business, stemming from contract loss provisions and asset write-downs on production equipment. During the same period, its overall automotive business reported an operating loss of JPY 82.8 billion.