site.btaNidec Elesys President: We Chose Bulgaria for Its Strong Tradition in Electrical Engineering

“Bulgaria has a strong tradition in electrical engineering, in the 1980s it was one of the main countries that provided computers and other electronics to the Eastern economies. This culture of "preference for electrical engineering" still exists and that is why we chose Bulgaria as our development centre,” Nidec Elesys President and CEO Takashi Furuhashi told BTA.

The Japanese Nidec Corporation is one of the world's leading suppliers of components to the automotive industry, and Nidec Electronics is one of its main divisions specializing in electronics and control systems. At the end of 2022, Nidec Elesys opened a development centre in Sofia, its first in Europe, and this week two plants in Novi Sad, Serbia, where it will produce automotive engines, automotive inverters and electronic control modules, employing more than 1,200 people in the first phase of the project.

Furuhashi talked about both the strategy behind the choice of production and development bases in the Balkans and the company's vision for the future development of the electric vehicle market. The company's main focus is on automotive inverters, a component of the so-called eAxle, which effectively replaces the internal combustion engine in electric vehicles and is among the most important components for their operation.

Serbia has been chosen as a manufacturing base because of the good relations it has with both China and the European Union and the opportunities these links provide for securing the necessary components at competitive prices and for market access. At the same time, thanks to the existing production facilities of companies such as Continental, ZF and Fiat, the necessary personnel can be found, says Furuhashi.

Bulgaria, on the other hand, has "very smart engineers". The development centre in Sofia currently employs nearly 50 people, and the company hopes to double that number soon.

The proximity of the two parties and the teams working together makes the combination ideal, according to the Nidek Elesys Head. The components produced as a result of this activity will be sold not only in Europe, where the Japanese company has partnered with names such as Stellantis, but also worldwide.

Furuhashi argued the market in the future will be somewhat regionally segmented and the plant in Serbia and the development centre in Bulgaria will work mainly for European customers.

Electric Cars Are The Future

The shift to electric vehicles is the leading trend in the global market and this will not change, although hybrids and hybrid solutions will continue to exist, according to the Japanese businessman. This will take time, during which the necessary infrastructure can be developed.

Undoubtedly, the world's biggest market at the moment is China, where the Chinese manufacturer BYD alone sells 200,000 electric vehicles a month. At the same time, the global shortage of semiconductors, which is the main problem in the sector at the moment, is likely to be resolved in the next two to three years, with many Chinese companies entering the market to meet demand, Furuhashi predicted. For the sector, the biggest challenges at the moment relate to price competitiveness and creating "uniqueness" in products, he added.