Inmotion readies to ramp up production in the Stockholm region
Sales of electric vehicles are soaring as the world makes collective efforts to steer towards a greener future. To meet the rising demand, Inmotion Technologies is expanding its manufacturing centre to increase its production of power electronics for commercial vehicles. The 6000sq/m production facility will open up around 100 new jobs in the coming five years and further strengthen the Stockholm region's unique expertise in vehicle electrification.
"We're increasing our capacity immensely. The market is growing quickly and we're just scratching the surface of what's there," says Inmotion's CEO Mattias Nubäck. "It's still just the first fractions of the market which are converting to electricity. We as a company have been supplying electrification solutions to vehicles for a long time, more than 30 years. This is the place to be now; there's no question about it."
The increased capacity will enable Inmotion to deliver equipment to at least 200,000 commercial vehicles per year with the possibility to scale further. The total investment will be in the vicinity of SEK 200-250 million (MEUR 19-24) and support the company's ambition to reach almost SEK 1 billion in sales in 2026.
"Electrification is the solution for many emission issues, and not so many companies in the world can do what we do," says Nubäck. "We have seen that volumes are rapidly increasing, so we need more space and capacity. These products are larger, and they're more complicated. They require more logistics space, storage area, and more advanced production lines. The market is exploding."
Many of the world's leading electric vehicle manufacturers already turn to Inmotion to provide innovative products for use in their vehicles. As the market gains momentum and more companies shift to electricity, innovating at speed will be essential. A pivotal part of the five-year plan will be to increase capacity for internal testing of products. The new facility will allow for on-site testing to facilitate more efficient development and qualification of new products.
Stockholm: where impact starts
Expanding in Stockholm makes sense in more ways than one, says Nubäck. For a start, many of Inmotion's key customers in the truck and bus markets are based in Europe. The company has an in-region-for-region philosophy and strives to deliver locally-produced products for the region where they are used.
This strategy has proven successful; being able to deliver products in the same region as customers reduces transport, customs and lead times, resulting in a more sustainable business both environmentally and financially.
Moreover, Inmotion - which was originally founded in 1967 and acquired by Zapi Group in 2014 - has been in Tyresö for more than 40 years. In this time, it has nurtured a solid knowledge base in the area, which is located just south of Stockholm.
Once seen as niche, today the industry is quickly gaining new markets. Inmotion - and indeed, the Stockholm region, where the automotive industry is omnipresent - is well-positioned for this surge in business.
"There's a talent pool here which we have been actively growing for many years. There aren't many companies that make inverters or power electronics like this. This is one of the few places in the world where we have some good competence and market background," says Nubäck.
As Inmotion's business grows, so does its global impact. The products it delivered last year alone could the reduce emission of up to nine million tonnes of carbon dioxide. Sustainability is an important keyword for the company, which is committed to reducing energy consumption by making it possible for its customers to replace internal combustion engines.
"Part of sustainability is that you have to have financial sustainability for the business too," says Nubäck. "We have to be able to produce cost-efficient solutions with some profitability. If a product doesn’t make financial sense, it will never take off."
The new production facility exemplifies Inmotion's commitment to company-wide sustainability. The building is designed with climate-saving measures such as solar panels on the roof and a geothermal heating system for generating climate-smart heat. For staff and customers, a large number of vehicle chargers will be installed in addition to bicycle chargers to facilitate commuting by electric car and bicycle.
Sustainability is also applied to the workforce. Work climate, respect for individuals and the opportunity to develop are key considerations that don’t just benefit employees but bolster business growth.
"We are in a really nice position,” says Nubäck. “Not only can we do what we do well and what we like to do, but we can also do something good for the planet. It's a good place to be right now."