3. Steering the Management Regionally

[5] 2018 India Mid Term Policy: Challenging next business growth, go for next stage

“Post Revival Plan”

In the wake of India's dynamic political-economic landscape, DENSO found itself at a critical juncture post-revival, between 2015 and 2018. The backdrop of India's economic history, transitioning from protectionist policies to liberalization in 1991, laid the groundwork for DENSO's strategic evolution. This period witnessed the Indian economy grappling with the repercussions of demonetization in 2016 and the implementation of the Goods and Services Tax (GST) in 2017, causing a temporary slowdown.

However, amidst these challenges, the year 2018 marked a paradigm shift with the introduction of the India Mid Term Policy, ushering in a new era of opportunities. As one of the fastest-growing markets globally, India presented immense potential for DENSO to capitalize on. The policy highlighted the importance of embracing regulatory changes from 2020 onward, signaling the need for proactive adaptation to the evolving market landscape.

The core of DENSO's strategy lay in challenging itself for the next phase of business growth, encapsulated in the Post-Revival Plan. Sales expansion emerged as a crucial pillar, particularly in the areas of Environment and Safety, along with the advancement of Diesel Common Rail Systems (CRS). This entailed the expansion of local Commercial Vehicle (CV) customer base, supported by robust technical expertise.

Simultaneously, the focus on Research and Development (R&D) received a significant boost, aiming to enhance engineering capabilities for the expansion of system businesses, including Two-Wheeler Fuel Injection (2W FI) and CRS. To ensure competitiveness, DENSO prioritized the enhancement of production infrastructure, supply base, and system capabilities, aligning with the evolving market demands.

The overarching goal of the India Mid Term Policy was to elevate all Indian Group Companies (IGCs) to profitability, strengthening the organizational framework for sustained growth. In 2019, DNHA-Plant 2 witnessed a pivotal milestone with plant expansion, reinforcing its position as a leading manufacturing hub. Additionally, the inauguration of the new Electronic Factory marked a significant stride, further solidifying DENSO's commitment to excellence and growth.