Tanaka Precision Industrial

Basic Information

Stock Code
7218
Industry
Transportation Equipment
Category Detail
Auto Parts
Prefecture
Toyama Prefecture
Establishment Year
October 1957
Listing Year
December 2000
Official Website
http://www.tanasei.co.jp/
TSE Information
TSE Information
Yahoo! Finance
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Other Companies
Showa Kako, Chuo Koken Kogyo, NTN, Kanemitsu, GMB, Musashi Seimitsu Industry, Yutaka Giken, Univance, Aisin, MURO, Exedy, FCC

Overview

Tanaka Precision Industrial, founded in 1957, is an automotive parts manufacturer and a leading industry player strong in high-precision drive and steering system parts related to Honda Motor.

Current Situation

Tanaka Precision Industrial has recently achieved steady earnings in the automotive sector, particularly centered on VTEC engine parts for Honda. In 2024, precision parts for H3 rocket engines were adopted, advancing technology into the space industry. Overseas bases in Vietnam, Thailand, and the US are strengthening the global production system. ISO/IATF certification ensures thorough quality management, with diversification pursued through multiple subsidiaries and group collaboration. Since 2023, full subsidiarization of Honda sales subsidiaries has enhanced sales capabilities. Leveraging quality and technological strengths in parts development and business partnerships maintains competitive superiority. Moving forward, the company plans to strategically expand environmentally compatible parts and new business areas. Financially, it steadily secures profits while focusing investments on sustainable growth.

Trivia

Interesting Facts

  • Incorporated in 1957 with over 60 years of history.
  • One of the primary parts suppliers for Honda Motor.
  • Manufactured engine parts for H3 rocket in 2023.
  • Early acquisition of ISO/TS16949 (now IATF16949) certification.
  • Has multiple subsidiaries and overseas factories domestically and internationally.
  • Founded initially in an apartment of Nabeya Bi-tech Kaisha.
  • Fully subsidiarized sales subsidiary in 2023 for strengthening.
  • Head office located in Fuchu-machi, Toyama City, Toyama Prefecture.
  • Renowned for high-precision parts manufacturing through machining.
  • Long track record of transactions with domestic and overseas automotive manufacturers.

Hidden Connections

  • Deep technological collaboration with Honda Motor, with numerous adoptions in Honda's high-performance engine parts.
  • Built technological foundation in space and aviation through H3 rocket parts manufacturing.
  • Expanding into Southeast Asia and US markets through overseas subsidiary establishments.
  • Strengthening market penetration through sales network with affiliate Honda Sales Tanaka.
  • Competes with and collaborates with rival companies like Aisin Group, Suzuki, and Yamaha Motor.
  • Exploring applications in medical device parts beyond space using precision machining technology.
  • Contributes to local employment creation and industrial promotion in Toyama through community-based management.
  • Traditional precision machining technology from the former Tanaka Seisakusho era continues to be inherited.

Future Outlook

Growth Drivers

  • Expansion of demand for electrification-compatible automotive parts
  • Strengthened technological expansion into space and aviation fields
  • Expansion of production and sales networks in global markets
  • Advancement of R&D for environmentally regulatory compliant products
  • Further innovation in high-precision machining technology
  • Deepening relationships with domestic and overseas automotive manufacturers
  • Development of new customer segments such as industrial machinery
  • Efficiency gains through IoT and smart factory transformation
  • Market expansion for aftermarket parts
  • Acceleration of DX (Digital Transformation)

Strategic Goals

  • Achieve over 60% global sales ratio
  • Over 30% sales ratio for electric vehicles and environmentally compatible parts
  • Expansion of sales in space and aviation businesses
  • Continuous acquisition of international certifications with further enhanced product quality
  • Full rollout of smart factories and 40% production efficiency improvement
  • Strengthened social trust through achievement of sustainability goals
  • Expansion of customer touchpoints utilizing sales subsidiaries
  • Promotion of technological innovation through diverse talent utilization
  • Creation of over ¥5 billion annual sales in new business areas
  • Environmental activities aiming for 30% CO2 emission reduction

Business Segments

Precision Parts Supply to Automotive Manufacturers

Overview
Stably supplies high-precision, high-reliability parts to major automotive manufacturers.
Competitiveness
Strong transaction relationships and technological development capabilities centered on Honda affiliates.
Customers
  • Honda Motor
  • Aisin
  • Suzuki
  • Yamaha Motor
  • Kawasaki Motors
  • Toyota Motor
Products
  • Drive System Gears
  • Transmission Parts
  • Power Steering Parts
  • Engine Accessories
  • Fuel Injection Devices
  • Piston Rings

Global Production Utilizing Overseas Bases

Overview
Local production at factories in Thailand, Vietnam, and the US for supply to global markets.
Competitiveness
Rapid manufacturing system tailored to local needs.
Customers
  • Southeast Asian Automotive Manufacturing
  • North American Automotive Industry
Products
  • Precision Transmission Parts
  • Custom Machined Parts
  • Engine Parts

Space and Aviation Parts Manufacturing

Overview
Entering fields requiring high reliability, such as H3 rocket parts.
Competitiveness
Reliability through high precision and quality control.
Customers
  • Space-Related Companies
  • Aircraft Parts Manufacturers
Products
  • Engine Precision Parts
  • High Heat-Resistant Alloy Parts
  • Special Processed Products

Collaboration with Parts Sales Subsidiaries

Overview
Strengthens sales and service networks through collaboration with group subsidiaries.
Competitiveness
Extensive sales network and support system.
Customers
  • Domestic Automotive Dealers
  • Repair Shops
  • Auto Parts Stores
Products
  • Genuine Parts
  • Aftermarket Parts

Special Alloy and Mold Parts Manufacturing

Overview
Parts manufacturing leveraging precision machining technology for molds.
Competitiveness
Advanced machining technology and material selection capabilities.
Customers
  • Mold Manufacturers
  • Special Material Manufacturers
Products
  • High-Precision Mold Parts
  • Special Alloy Parts

Industrial Machinery Parts Supply

Overview
Provides reliable parts for a wide range of industrial machinery.
Competitiveness
Adaptability to diverse industries and mass production technology.
Customers
  • Construction Machinery Manufacturers
  • Agricultural Machinery Manufacturers
  • Machine Tool Manufacturers
Products
  • Machinery Drive Parts
  • Precision Shafts
  • Reducer Parts

Two-Wheel Vehicle and Light Vehicle Parts

Overview
Provides high-performance parts to motorcycle manufacturers.
Competitiveness
Parts lineup balancing lightweight and durability.
Customers
  • Two-Wheel Vehicle Manufacturers
  • Light Vehicle Manufacturers
Products
  • Drive System Parts
  • Engine Accessory Parts

Aftermarket Parts and Services

Overview
Supplies highly reliable parts for repairs and customizations.
Competitiveness
Genuine quality and rapid supply system.
Customers
  • Automotive Repair Shops
  • Parts Distributors
Products
  • Repair Parts
  • Custom Parts

Technology Consulting and Partnership Services

Overview
Deploys consulting services leveraging technological strengths.
Competitiveness
Provision of advanced technology know-how.
Customers
  • Peer Companies
  • New Business Companies
Products
  • Technology Development Support
  • Production Efficiency Improvement

Environmentally Compatible Parts Development

Overview
Engages in development of new materials and parts compliant with environmental regulations.
Competitiveness
Proactive introduction of environmental compatibility technologies.
Customers
  • Automotive Manufacturers
  • Environmental Equipment Manufacturers
Products
  • Low-Emission Parts
  • Environmentally Compliant Parts

Logistics and Supply Chain Support

Overview
Supports efficiency and stabilization of parts supply.
Competitiveness
Optimal logistics system through group collaboration.
Customers
  • General Manufacturing
  • Logistics Companies
Products
  • Parts Supply System
  • Inventory Management Services

Overseas OEM and OEM Supply

Overview
Promotes OEM supply and joint development for overseas manufacturers.
Competitiveness
Global market responsiveness.
Customers
  • Overseas Automotive Manufacturers
  • Overseas Parts Manufacturers
Products
  • OEM Parts
  • Jointly Developed Parts

Competitive Advantage

Strengths

  • High-precision machining technology
  • Strong transaction relationship with Honda
  • Global production system with multiple bases
  • High-quality quality management system
  • Diverse product lineup
  • Entry into space and aviation fields
  • Collaboration with domestic and overseas group companies
  • Technology development and innovation capabilities
  • Stable capital base
  • Long-term customer relationship building
  • Differentiation through specialized product range
  • Adaptability to diverse markets and industries
  • Overseas market development capabilities
  • Extensive client network
  • Solid financial position

Competitive Advantages

  • Market share in Honda-affiliated engine parts
  • Stable supply system for high-difficulty precision parts
  • Flexibility from extensive domestic and overseas production bases
  • Application and expansion of space-related technologies
  • Reliability from international certifications like IATF16949
  • Continuous equipment investment for production efficiency improvement
  • Synergy effects with group companies
  • Competitiveness from long-accumulated technological know-how
  • Custom response to customer needs
  • High cost-performance product provision
  • Technology development enhancement through business partnerships
  • Expansion of presence in overseas markets
  • Promotion of environmentally compatible parts development
  • Track record of high-durability and high-reliability products
  • Revenue stabilization through aftermarket parts expansion

Threats

  • Impact of automotive industry electrification and EV shift
  • Price pressure from intense international competition
  • Impact of exchange rate fluctuations on profit margins
  • Risk of rising raw material prices
  • Increased product adaptation costs from stricter environmental regulations
  • Supply chain disruption risks
  • Emergence of competitors in emerging markets
  • Need to keep up with rapid technological innovations
  • Production efficiency decline from labor shortages
  • Impact of geopolitical risks on overseas operations
  • Brand damage risk from quality issues
  • Risk of delayed revenue from new businesses

Innovations

2023: Adoption of Engine Parts for H3 Rocket

Overview
Practicalized high-precision parts manufacturing technology for space rockets and equipped parts on H3 rocket.
Impact
Successfully expanded business into the space industry.

2024: Development of Lightweight Technology for High-Precision Drive Parts

Overview
Successfully developed lightweight products using new materials and machining technologies, contributing to improved fuel efficiency.
Impact
Supports CO2 emission reductions for customer vehicles.

2021: Expansion of Global Production Bases

Overview
Enhanced production capacity at Vietnam and Thailand factories to strengthen global market response.
Impact
Achieved increased overseas sales ratio and shortened delivery times.

2022: IATF16949 Certification Acquisition

Overview
Achieved improved reliability through advanced quality management system.
Impact
Contributed to stable orders from major customers.

2020: Introduction of Environmentally Compatible Machining Technology

Overview
Implemented machining technologies reducing waste and improving energy efficiency.
Impact
Realized production cost reductions and lower environmental impact.

2023: Electronically Controlled Power Steering Parts Development

Overview
Newly developed and launched high-precision parts for vehicle electronic controls.
Impact
Strengthened competitiveness in next-generation automotive parts market.

2024: Sales Enhancement through Full Subsidiarization of New Subsidiary

Overview
Unified sales system through reorganization of sales subsidiary for improved efficiency.
Impact
Improved profitability and strengthened customer response.

2021: Introduction of Advanced Surface Treatment Technology

Overview
Adopted cutting-edge surface treatment technology to improve product durability.
Impact
Extended part lifespan and improved quality evaluation.

2022: Promotion of Smart Factory Transformation

Overview
Advanced automation and efficiency of production processes using IoT.
Impact
Achieved 20% improvement in production efficiency and cost reductions.

2023: Enhanced Development of Environmentally Regulatory Compliant Products

Overview
Focused R&D on parts contributing to fuel efficiency improvement and emission reductions.
Impact
Launched environmentally compatible vehicle parts into the market.

Sustainability

  • Manufacturing process improvements aimed at reducing environmental impact
  • Promotion of waste recycling
  • Introduction of energy-saving equipment
  • CSR activities aiming for coexistence with local communities
  • Further improvement of work environment and occupational health and safety
  • Advancement of supply chain greening
  • Strengthened development of environmentally compatible parts
  • Employee-participating environmental conservation activities
  • Implementation of sustainable resource procurement
  • Promotion of product longevity and upcycling
  • Setting and achievement of CO2 emission reduction targets
  • Active participation in local environmental protection