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