DENSO

Basic Information

Stock Code
6902
Industry
Transportation Equipment
Category Detail
Auto Parts
Prefecture
Aichi Prefecture
Establishment Year
December 1949
Listing Year
December 1951
Official Website
https://www.denso.com/jp/ja/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Shin-Etsu Chemical , Fujifilm Holdings , Toyota Industries , Riken NPR , TPR , Nittan , Hitachi , TDK , Murata Manufacturing , Mitsubishi Heavy Industries , Toyota Motor , Tokyo Radiator Manufacturing , Tirad , Mikuni , Aisin , Muro Corporation , Honda , Aisan Industry , Fujioze X , Ohashi Technica

Overview

DENSO, founded in 1949, is Japan's leading automotive parts manufacturer and the world's second-largest parts maker, offering a wide range of onboard products with global expansion.

Current Situation

DENSO recorded consolidated sales of approximately ¥6.4 trillion and operating profit of approximately ¥426 billion for the fiscal year ended March 2023, maintaining international competitiveness as a core Toyota Group company. It supplies a wide range of products, including automotive thermal equipment, engine-related parts, and electronic devices, to major car manufacturers worldwide, boasting over 50% domestic market share in car air conditioners. Emphasizing R&D, it is strengthening in-house semiconductor production, autonomous driving technology, and entering new businesses like industrial drones and healthcare. Actively pursuing environmental technologies such as CO2 refrigerant and EcoCute, it is implementing mid-to-long-term strategies for a sustainable society. Despite challenges like recalls, it sustains stable growth through technological prowess and strong group support.

Trivia

Interesting Facts

  • Developed QR codes, now a globally standardized technology.
  • Strong independent culture despite being part of Toyota Group.
  • In 1954, ran ads for drum-type washing machines.
  • Involved in developing robot arms used in shogi Electric King matches.
  • Over 50% domestic share in car air conditioners, top in industry.
  • Expanding into multiple fields via industrial drone development.
  • Leads industry with ejector cycle freezer technology.
  • Stabilizes parts supply and cuts costs through in-house semiconductors.
  • Established basic research institute in 1991 for cutting-edge tech development.
  • Pioneer in setting up global research base in Haneda, Tokyo.
  • All past presidents have been homegrown employees.
  • Large-scale recall issue with fuel pumps drawing social attention.
  • Contributes to environmental response by advancing CO2 refrigerant car AC tech.
  • In 2024, absorbed subsidiaries to improve business efficiency.
  • Promotes regional contributions as sponsor of pro sports teams.

Hidden Connections

  • QR codes were developed by DENSO subsidiary DENSO Wave and became globally popular.
  • Toyoda family involved in board of directors, strong ties within Toyota Group.
  • Unmanned aerial vehicle technology applied to infrastructure inspection and agriculture support.
  • EcoCute commercializes technology jointly developed with Central Research Institute of Electric Power and Tokyo Electric Power.
  • Once manufactured mobile terminals, technical ties to KDDI roots company.
  • Sponsors pro sports teams like DENSO Bright Pegasus.
  • Fuel pump recall issue severely impacted by government guidance and major automakers.
  • Strengthening onboard software development through subsidiary absorption.

Future Outlook

Growth Drivers

  • Increased demand for high-function parts with spread of electrification and autonomous driving.
  • Expansion of demand for low-emission, energy-saving parts due to stricter environmental regulations.
  • New market development in industrial drones and robot technology.
  • Strengthened parts supply amid automakers' global strategies.
  • Improved in-house semiconductor capacity and supply stability.
  • Overseas growth supporting Toyota Group's global expansion.
  • Effects of ongoing investments and innovations in new business fields.
  • Market expansion from widespread adoption of advanced information safety systems.
  • Strengthened collaboration with regions and industries centered on environmental tech.
  • Improved manufacturing efficiency via digitalization and AI utilization.
  • Enhanced development system for rapid response to diverse customer needs.
  • Bolstered corporate competitiveness through talent development and diversity promotion.

Strategic Goals

  • Achieve over ¥7 trillion in sales and maintain operating margin above 10%.
  • Establish world top-class share in electrification parts market.
  • Lead industry in CO2 reduction and low-environmental-impact technologies.
  • Grow new businesses to ¥100 billion in sales scale.
  • Further optimize and diversify global production system.
  • Achieve over 50% in-house semiconductor production ratio.
  • Expand product lineup for advanced safety and autonomous driving systems.
  • Advance social contributions and environmental management toward SDGs achievement.
  • Improve employee satisfaction through diversity respect and workstyle reforms.
  • Realize production innovations leveraging IT and digital technologies.

Business Segments

Equipment Supply to Automotive Manufacturers

Overview
Supplies high-quality parts and onboard systems to major automakers.
Competitiveness
Synergy within Toyota Group and advanced R&D capabilities
Customers
  • Toyota Motor
  • Honda
  • Nissan Motor
  • Suzuki
  • Mitsubishi Motors
  • Mazda
Products
  • Fuel Injection Devices
  • Exhaust Sensors
  • Ignition Devices
  • Power Steering Motors
  • Onboard ECUs
  • Electronic Control Modules

Industrial Equipment & Robots

Overview
Supports industrial sectors using FA robots and drone technology.
Competitiveness
High-precision technology and global production system
Customers
  • Factory Automation Companies
  • Logistics Companies
  • Industrial Equipment Manufacturers
Products
  • Industrial Robots
  • Unmanned Aerial Vehicles (Drones)
  • Electronic Components

Information Safety System Provision

Overview
Provides a wide range of onboard information safety and security products.
Competitiveness
Advanced integration of onboard communication technology
Customers
  • Automakers
  • IT System Vendors
  • Security Companies
Products
  • Vehicle Fleet Management Systems
  • Security Systems
  • Data Communication Modules

Environmental & Energy Products

Overview
Develops and provides energy-saving equipment leveraging natural refrigerant technology.
Competitiveness
World-first commercialization of ejector cycle technology
Customers
  • Home Builders
  • Air Conditioning Equipment Manufacturers
  • Energy Service Providers
Products
  • CO2 Refrigerant Heat Pump Water Heaters
  • Energy Efficiency Modules

Medical & Healthcare Products

Overview
Promoting new business expansion in healthcare.
Competitiveness
Specialized technology and Toyota Group support
Customers
  • Medical Institutions
  • Cosmetics Manufacturers
  • Biotech Companies
Products
  • Hand Cream
  • Health Management Devices

Onboard Communication Equipment Supply

Overview
Has a track record of OEM supply for mobile phone terminals.
Competitiveness
Advanced know-how in wireless communication technology
Customers
  • Mobile Phone Carriers
  • Onboard Equipment Manufacturers
Products
  • Automotive Mobile Terminals
  • Onboard Wireless Communication Modules

Secondary Batteries & Electrification Parts

Overview
Develops electrical equipment and control systems for electric vehicles.
Competitiveness
High-efficiency inverters and onboard battery monitoring technology
Customers
  • EV Manufacturers
  • Hybrid Vehicle Developers
Products
  • DC-DC Converters
  • Battery Monitoring Systems

Manufacturing Equipment & Facilities

Overview
Provides equipment to support automation and precision processing in manufacturing.
Competitiveness
High-precision production technology and years of experience
Customers
  • Automotive Parts Manufacturers
  • Electronic Parts Manufacturers
Products
  • Production Equipment
  • Measuring Instruments
  • Automated Assembly Machines

Vehicle Safety Equipment

Overview
Develops and supplies control components to enhance driving safety.
Competitiveness
Integration with advanced driver assistance technologies
Customers
  • Automakers
  • Safety Parts Suppliers
Products
  • ABS Actuators
  • Airbag Computers
  • Millimeter-Wave Radar

Agriculture & Construction Machinery Related

Overview
Provides environmental control products for agricultural and construction machinery markets.
Competitiveness
Application of broad heating/cooling technologies
Customers
  • Agricultural Machinery Manufacturers
  • Construction Machinery Manufacturers
Products
  • Agricultural Air Conditioners
  • Construction Machinery Cooling Systems

Competitive Advantage

Strengths

  • Scale and brand power as industry leader
  • Strong ties within Toyota Group
  • Diverse product portfolio
  • Superior technological development and in-house semiconductors
  • Global production and sales network
  • Active investment in environmental technology
  • High-quality manufacturing technology
  • Long track record and reliability
  • Risk diversification through diversified businesses
  • Stable financial base
  • Advanced R&D facilities and talent
  • Strong cost competitiveness
  • Excellent quality management system
  • Transaction history with major carmakers worldwide
  • Domestic No.1 share in core product lineup

Competitive Advantages

  • Overwhelming domestic market share in car air conditioning technology
  • Quality and cost control via proprietary in-house semiconductors
  • Global R&D network spanning 31 countries
  • Focus on eco-friendly products to maintain technological leadership
  • Strong integration with Toyota Group's supply chain
  • Flexible response to customer needs with diverse product lines
  • Early investments in new fields like industrial drones
  • Early establishment of test sites for autonomous driving technology
  • Long-term vision for environmental and social contribution management
  • Implementation of advanced production innovations and improvements
  • Highly rated quality assurance systems domestically and internationally
  • Talent development emphasizing skilled engineers
  • Stable funding environment
  • Efforts to improve transparency in recall responses
  • Strategy to dominate eco-car parts market

Threats

  • Brand impact from recalls on parts like fuel pumps
  • Global instability in semiconductor and parts supply
  • Risks in adapting to rapid electrification and autonomous driving changes
  • Technological innovations by competitors (Bosch, Aisin, etc.)
  • Burden of product improvements due to stricter global environmental regulations
  • Potential manufacturing cost increases from exchange rate fluctuations
  • Geopolitical risks affecting production sites
  • Challenges in technology succession due to talent shortages
  • Tariff impacts from global trade friction
  • Demand for flexible response to rapid market need changes
  • Intensified competition from new entrants and alternative technologies
  • Rising costs from heightened expectations on social responsibility

Innovations

2024: Enhancement of next-generation in-house semiconductor technology

Overview
Advanced in-house automotive semiconductor production technology to improve product reliability and reduce costs.
Impact
20% improvement in production efficiency, enhanced competitiveness

2023: Opening of Global R&D Tokyo, Haneda site

Overview
Established autonomous driving technology test site in Haneda Innovation City to accelerate development.
Impact
Shortened development period for autonomous driving technology

2022: Expansion of CO2 refrigerant heat pump technology commercialization

Overview
Expanded EcoCute technology to other fields to promote energy-saving environmental response.
Impact
50% improvement in energy efficiency

2021: Market launch of industrial unmanned aerial vehicles

Overview
Commercialized industrial drones using sensor technology for infrastructure inspection, etc.
Impact
New business development and sales expansion

2024: Next-generation onboard ECU development

Overview
Completed design of next-generation ECUs compatible with autonomous driving and advanced driving support.
Impact
Securing superiority in onboard systems market

2023: Environmental enhancement upgrade of fuel injection systems

Overview
Introduced high-efficiency fuel injection systems equipped with exhaust reduction technology.
Impact
Improved competitiveness of environmentally compliant products

2020: Commercialization of ejector cycle refrigeration units

Overview
Commercialized ejector cycle technology for significant energy efficiency improvement.
Impact
Achieved 60% reduction in power consumption

Sustainability

  • Achieved zero emissions at all sites (2002)
  • Promotion of CO2 refrigerant cooling equipment adoption
  • Production innovations for reduced environmental impact
  • Expansion of sustainable material use
  • Collaborative environmental conservation activities with local communities
  • Internal inclusive policies promoting diversity
  • ESG goal setting in long-term management policy
  • Sustainable supply chain management
  • Global environmental certification acquisition plan
  • Improved recycling rates and waste reduction