2030 DENSO Group Mid-Term Management Plan “CORE 2030” Overview

In 2022, we formulated our “2025 Mid-Term Policy” and have been steadily implementing initiatives while accurately capturing the rapidly changing business environment.

In the mobility domain, responding to the diversification of powertrains while reducing environmental impact has been a critical challenge. Building on the fuel efficiency and emissions reduction technologies we have cultivated, as well as our electrification technologies, DENSO has addressed these challenges by offering a wide range of products through a multi-pathway approach—covering internal combustion engine vehicles, HEVs, PHEVs, battery EVs, and even FCEVs.

In addition, as vehicles become increasingly intelligent in the era of Software-Defined Vehicles (SDVs), with the advancement of advanced driver assistance and automated driving, we have contributed to reducing traffic fatalities through highly reliable ADAS products and enhanced the value of our customers’ vehicles.

Furthermore, in new domains such as agriculture and factory automation (FA), we have leveraged technologies honed in the mobility domain to develop products and services that enhance customer value and help solve societal challenges.

As a result of these steady efforts to enhance customer value, we achieved our initial targets across each domain while laying solid foundations for future growth.

At the same time, new challenges have become clearer.

Initiatives such as advanced safety, autonomous driving, and SDVs increasingly require integration with social systems, making cross-industry collaboration—not efforts by a single company—essential. In addition, the rapid evolution of AI represents a critical turning point. Whether we can incorporate AI as a winning strategy to create new value for our customers will determine the future success and sustainability of companies.

While our past initiatives have produced tangible results, the pace of environmental change continues to accelerate.

To further enhance the value we create and connect it to growth, we have defined a new path forward—“CORE 2030”—with the aim of becoming a company that realizes a future society expanded from mobility through human potential.

The slogan of CORE 2030 is “Opening the Future with Refined Technologies.”

So, what technologies will we refine over the next five years, and how will we open the future by leveraging our strengths?

Please allow me to explain the three growth strategies that form CORE 2030.

• 2030 DENSO Group Mid-Term Management Plan “CORE 2030” Growth Strategies｜DRIVEN BASE - DENSO

Mobility continues to evolve in diverse ways, rooted in the characteristics of each country and region, such as energy conditions, industrial policies, and lifestyles.

To meet the expectations of customers who are tackling this diversification at the forefront, we will refine and expand core technologies that are essential across all options. Specifically, we will further deepen foundational technologies—such as the performance enhancement and labor-saving of semiconductors, which are key components, and materials development—by leveraging our long-cultivated capabilities in advanced research and development.

By combining mechanics, electronics, and software through our system proposal capabilities, we will optimally integrate these technologies into systems tailored to customer and societal needs, expanding them across entire vehicles, including energy management and highly reliable ADAS systems.

To create new value that enhances our customers’ competitiveness, we will invest JPY 3.7 trillion in R&D over the five years to 2030, aiming to approximately double sales in electrification and intelligence to around JPY 4 trillion by 2030.

AI is currently undergoing explosive evolution.

It is no longer confined to the digital world but is beginning to merge with robotics and mobility, expanding into the physical domain. This marks a shift of AI into the implementation phase and presents a once-in-a-generation opportunity for Japanese manufacturing, which has continuously refined its capabilities through on-site excellence, to fully leverage its strengths and dramatically enhance the value it creates.

At DENSO, our manufacturing sites possess the power of high-quality, high-efficiency manufacturing. Embedded within people and work is a vast accumulation of practical knowledge that is difficult to replicate—this has become a new form of capital in the AI era.

By developing AI that can be implemented in development processes and production sites—made possible by this capital—we will achieve dramatic productivity improvements while transforming work styles and shifting human effort toward higher value-added activities.

We will realize these challenges of human–AI evolution at our new Zenmyo-Minami Plant in Nishio City, Aichi Prefecture, scheduled for completion in 2027.

By elevating Japan-born, on-site-refined manufacturing capabilities to an overwhelming level, we aim to transform the global manufacturing landscape.

The key focus areas here are solving industry-wide challenges, partner collaboration in new domains, and human capital development.

Globally, challenges such as carbon neutrality, the circular economy, and resource and energy security are shared across countries and regions. DENSO has been addressing these issues on a global scale. To ensure that mobility continues to deliver new value to society, it is essential to tackle these challenges beyond the boundaries of individual companies.

For example, in-motion wireless power transfer systems have the potential to overcome constraints related to batteries and driving range, fundamentally changing mobility. However, their social implementation requires comprehensive efforts, including infrastructure development.

Leveraging our strong connections with customers, partners, governments, and industry organizations, DENSO will act as a connector among diverse stakeholders—and at times take the lead—to solve such challenges.

We have also been creating new value in agriculture and Factory Automation, fields where automotive technologies requiring high reliability and advanced systems can help address societal issues such as labor shortages and productivity improvement. Going forward, we will accelerate collaboration with strategic partners with whom we can grow together.

By 2030, we aim to achieve 75% productivity improvement in agriculture with sales of approximately JPY 100 billion, and in FA, contribute to alleviating labor shortages equivalent to 19,000 people, with sales of approximately JPY 300 billion.

In the semiconductor business, we will expand our automotive semiconductor technologies into industrial equipment and consumer applications, strengthening the industrial foundation. At the same time, we will feed back the resulting technologies and cost competitiveness into the automotive domain, further enhancing our customers’ competitiveness.

Ultimately, the driving force behind our growth is people.

When each employee takes on challenges to create new value, we earn trust and empathy from customers and society. That trust, in turn, fuels further motivation among employees, leading to the creation of the next value. We will continue to strongly support our employees’ challenges.

Through these growth strategies, by enhancing the value we create and realizing our envisioned future, we will invest JPY 3.7 trillion in R&D, JPY 2.2 trillion in capital expenditures, and JPY 0.7 trillion in value creation foundations such as human capital, in addition to executing strategic investments over the five years to 2030. As a result, we aim to achieve over JPY 8 trillion in revenue, an operating margin of over 10%, and ROE of over 11% by 2030.

Since its founding, DENSO has consistently challenged itself to solve social issues and deliver valuable products. None of these challenges were easy by the standards of their time. However, by sincerely listening to the voices of customers and markets, and by leveraging technology, manufacturing, and human potential, we have overcome them.

This mindset is the unchanging essence of “DENSO-ness” and the spirit embodied in our corporate slogan, “Crafting the Core.”

Even in an era of rapid change, we will continue to create new “cores” that are truly needed for mobility and society, building on this DENSO-ness and our strengths.

• Mid-Term Management Plan "CORE 2030" | Business Policies | Corporate Information | Who we are | DENSO Global Website