Shares sink 10.5, wiping about 2.7 bln off market value
Expects 100 mln FY loss at eaxle business vs profit seen previously
Leaves FY profit outlook unchanged vs slight rise expected by analysts
Chairman says China market increasingly tough in terms of price competition

TOKYO, Oct 24 Reuters Shares of Japan39;s Nidec logged their biggest decline in a decade and a half on Tuesday, tumbling more than 10 as investor concerns deepened over the motor manufacturer39;s prospects in an increasingly tough Chinese market for electric vehicles.

A decline in profitability at Nidec39;s EV business in China illustrates the headwinds parts makers face in the worlds top auto market, as car makers step up pressure on them to cut costs amid weakening EV demand growth and an intense price war.

The Japanese motor manufacturer now expects a 15 billion yen 100 million fullyear loss at its key eaxle business, rather than the profit it had previously seen, chairman and founder Shigenobu Nagamori told a press conference. The Chinese market which makes up just under a quarter of Nidec39;s sales was increasingly tough in terms of price competition, he said.

The company would review its plans in order to ensure healthy profits, he said. We should not compete in areas where our products are not valued properly, he said.

Nidec has invested heavily to become a key player in the electric vehicle supply chain with the eaxle component, which combines the motor, gears and powercontrol…