Asia & Oceania

DENSO (THAILAND) CO. LTD.

Fiscal 2012 Results

Despite being impacted by the major flooding in Thailand, demand continued to be firm, particularly in emerging markets such as India. In China, auto sales slowed due to the end of a subsidy program and other factors.

Results for fiscal year under review

Despite efforts by Japanese automakers to restore lost production, the lingering impact of the Great East Japan Earthquake and the Thai floods led to sales of ¥626.7 billion, a decrease of 3.9%, or ¥25.7 billion, over the previous year. Operating income was ¥59.5 billion, a decrease of 28.3%, or ¥23.5 billion, over the previous year.

Topics
Reinforcing Sales and Technology Development Systems in China

In China, DENSO is working to further enhance customer service and raise product competiveness by promoting designs that are tailored to market needs and are capable of being completed locally, among other measures. We will relocate and augment our technical center in Shanghai to these ends. Operations at the center are scheduled to commence in June 2013. We are already developing low-cost products with local suppliers, but plans call for further expanding the scope of local design and autonomous development through establishment of a large-scale assessment facility equipped with a wind tunnel.

We will also capture market growth by reinforcing customer-focused sales systems (in Beijing, Tianjin, Shanghai, Guangzhou, Changchun, Wuhan, Jinan and Chongqing) and work to increase sales not only to Japanese automakers but European, North American and local customers as well.

Construction of New Plant in India

DENSO is building a new manufacturing facility in Jhajjar, Haryana, India in order to accommodate increased automobile production in the country. Production at the facility is slated to commence in July 2013. The new plant, which will be the Jhajjar Plant of DENSO HARYANA Pvt. Ltd. (DNHA), will produce small motors for windshield wipers, power windows and other applications. Products will be supplied primarily to customers with production sites in northern India, including Japan-affiliated automakers like Maruti Suzuki and local manufacturers such as Tata Motors.

DENSO intends to continue accommodating the growing Indian market and raise its customer responsiveness through production capacity augmentation and other measures.

Net Sales

Operating Income


Shanghai Technical Center (illustration)


Jhajjar Plant of DENSO HARYANA (illustration)

Asia & Oceania:
Priority Activities Under Medium-Term Plan

The Asia & Oceania region, where further growth is expected, is driving DENSO's growth, and we intend to continue further increasing sales and being a global leader in low-cost technologies.

Strategy for Increasing Sales

DENSO will capture share in emerging countries, where growth continues to be expected, while also tackling motorcycle products, aftermarket sales and new businesses. In the aftermarket business, we will enhance sales and service networks and bolster product lineups in an effort to further develop the market. 

Bolstering Competitiveness (Low-Cost Project)

DENSO is working to reduce costs with a view to cutting costs in half, compared to conventional products, for markets in emerging countries, where price competition is intense. This involves identifying specific local conditions and customer needs, determining optimal features, performance levels and price, and then creating appealing products at a low cost by designing them on this basis.

The project had delivered a host of new orders from local automakers, particularly in China. DENSO intends to further bolster competiveness by using local materials and parts, and molds and equipment designed and manufactured locally.

Sales Target

Strengthening Production and R&D Systems

Based on the trends of the increasing demand accompanying the market growth in the ASEAN region and of automobile manufacturers' expansion of their local production, DENSO will build the optimum production supply system.

In detail, in addition to strengthening our mutually complementary framework inside the ASEAN region as hitherto by centralized production in various countries, we will increase our production capabilities and expand our new product lineups in Thailand and Indonesia, where markets are growing conspicuously. In Indonesia in particular, we have purchased the land for a new plant near our Bekasi Factory, and are examining the expansion of local production.

In the area of research and development, DENSO intends to further strengthen development capacity for vehicle systems that match regional needs and propose them to customers as system specifications.

Shigehiro Nishimura

In charge of DENSO International Asia Pte. Ltd.
Executive Director, DENSO Corporation

Growth strategies for Asia & Oceania region

In the Asian automobile market, which is expanding on the back of the rapid motorization of emerging countries, we expect competition with rival manufacturers to become increasingly fierce going forward. In response, we will promote activities based on the following core regional strategies in the Asia & Oceania region. First, we will expand sales by steadily capturing demand in growing markets, including Indonesia and India. Second, we will enhance our technology platform with the view to reduce product costs and boost regional product competitiveness. Third, we will promote a mutually complementary procurement framework for parts and materials across regions, considering progress with inter-regional FTAs between the ASEAN region and China and India. Finally, we will build an optimal production and supply framework that meets burgeoning regional demand and requests from customers. In Asia & Oceania, we will continue to embrace the challenges of further expanding business and improving earnings, with the aim of contributing to the DENSO Group's growth.

Noboru Yamada

In charge of DENSO (CHINA) Investment Co., Ltd.
Executive Director, DENSO Corporation

Growth strategies in China

Although the Chinese automobile market has seen a slight slowdown in growth, the market is projected to continue growing immensely going forward. Automakers of all kinds have entered China from all around the world, where they conduct business under complex tie-ups with local automakers. In China, it is therefore important to take a multi-faceted approach to developing business. This entails an accurate understanding of the policies and needs of both automakers representing end markets, such as Japan, the U.S., Europe and South Korea, and their local counterparts.

Looking ahead, we will focus intently on enhancing our local technology framework through steps such as upgrading and expanding technical centers. This will ensure that we properly contribute to our customers' own development activities in China. By doing so, we aim to raise the presence of DENSO in China.