Hitachi will turn out electrified-automobile motors in China as soon as fiscal 2020, aiming to capitalise on a government initiative to boost production of environmentally friendly vehicles.
Hitachi Automotive Electric Motor Systems, a joint venture of Hitachi Automotive Systems and Honda Motor, established a unit in Guangdong Province dedicated to the development and production of motors for electrified vehicles, including hybrids, according to Monday's announcement.
Outlays for the production facilities, which will be built on an 88,000-sq.-meter plot, and capacity have not been disclosed. Mass production may kick off in the fiscal year starting April 2020. Hitachi also operates similar sites in Japan and the U.S.
Under the new 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.
Global auto manufacturers have indicated plans to upgrade their new-energy vehicle businesses in China.
Hitachi Automotive Systems, which also makes lithium-ion battery systems for autos, seeks to increase sales 260% in fiscal 2020 from the fiscal 2016 level.