Akebono Brake Corporation

Basic Information

Stock Code
7238
Industry
Transportation Equipment
Category Detail
Auto Parts
Prefecture
Saitama Prefecture
Establishment Year
January 1936
Listing Year
October 1961
Official Website
https://www.akebono-brake.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Nippon Coke, Disrupta, W-SCOPE, TBK

Overview

Akebono Brake Corporation is a top supplier of brake parts for automobiles and railways, established in 1936, boasting high market shares domestically and internationally with advanced technology and a global production and supply system.

Current Situation

Akebono Brake Corporation recorded consolidated sales of approximately ¥193.3 billion for the fiscal year ended March 2020, maintaining about 40% share in the domestic brake pad market. Its main business is automotive brake parts supplied to major automakers such as Toyota, Nissan, and GM. It also has a strong presence in the railway market, particularly with Shinkansen brake parts, and possesses high competitiveness. In 2019, it established a business revitalization ADR to rebuild its financial foundation and renewed its management structure under President Yasuhiro Miyachi. While addressing declining orders due to rising material costs and reduced automotive production, it demonstrates innovative capabilities through technology supply to F1 and motorsports. It is also advancing sustainability initiatives. In the medium to long term, it aims for growth through global market expansion and development of high-performance brakes.

Trivia

Interesting Facts

  • Has continuously supplied emergency brake parts since the Shinkansen opened in 1964.
  • Has provided brake systems to McLaren F1 team since 2006.
  • In 2019, ended 55 years of family management since founding.
  • As of 2012, held 40% market share in brake pads in Japan and the US.
  • Previously served as long-term sponsor for multiple TV Kanagawa programs.
  • Founder Saji Oshi studied at Cornell University in the US and founded the company after returning to Japan.
  • Company emblem adopted Doshisha University's crest with permission.
  • Holds extremely high market share in Shinkansen brake parts.
  • In 2023, requested refinancing of loans from financial institutions.
  • Contributed to four consecutive Le Mans 24 Hours victories through motorsports parts supply.
  • Global company with multiple local subsidiaries in Europe, North America, Thailand, and China.
  • Faced multiple reports of inspection data falsification issues but is in recovery.
  • Products range from passenger cars to railway vehicles and large transport equipment.
  • Shinkansen brake calipers and linings highly evaluated domestically and internationally.
  • Company and brand name 'akebono' means 'dawn,' inspired by the landscape of the founding location.

Hidden Connections

  • Toyota Motor Corporation is the largest shareholder, with close product supply and technical collaboration.
  • Has a technical partnership with Germany's Robert Bosch.
  • Possesses world-top-level motorsports technology through F1 technology provision.
  • Formerly had US Delphi as top shareholder, but sold those shares to Toyota.
  • Gained high trust as primary supplier of Shinkansen emergency brakes.
  • Business revitalization ADR established through third-party allotment capital increase, achieving financial reconstruction.
  • Tokyo Stock Exchange decided to maintain listing based on market cap survey results.
  • Family management ended in 2019, transitioning to new management structure.

Future Outlook

Growth Drivers

  • Expansion of demand for lightweight, high-efficiency brake parts for electric vehicles.
  • Recovery of global automotive market and growth in emerging markets.
  • Business expansion of technological innovations cultivated in motorsports.
  • Development of high-function products compliant with enhanced safety and environmental regulations.
  • Demand for railway infrastructure renewal and entry into new transportation systems.

Strategic Goals

  • Achieve over 60% sales ratio from global markets.
  • Expand environmentally low-impact products to 80% of all products.
  • Establish and mass-produce next-generation motor vehicle brake technology.
  • Establish sustainable supply chain and promote digitalization.
  • Enhance brand value through strengthened technology supply to railways and motorsports.

Business Segments

Parts Supply to Automakers

Overview
Performs OEM supply of high-quality brake parts to major automakers.
Competitiveness
Advanced technology and global production network
Customers
  • Toyota Motor Corporation
  • Nissan Motor Corporation
  • GM
  • Honda
  • Suzuki
  • Mazda
  • Mitsubishi Motors
  • Volkswagen
  • Hyundai Motor Company
  • BMW
  • Daimler
Products
  • Brake Pads
  • Brake Calipers
  • Rotors
  • Master Cylinders
  • Disc Brake Systems
  • Braking Parts for Hybrid Vehicles
  • Electronically Controlled Brake Parts

Brake Systems for Railway Vehicle Manufacturers

Overview
Provides safe and highly durable brake systems for railway vehicles.
Competitiveness
Technology with high share in Shinkansen parts
Customers
  • JR Group Companies
  • Private Railway Companies
  • Railway Vehicle Manufacturers
Products
  • Brake Linings
  • Brake Calipers
  • Emergency Brake Parts

Technology Development and Supply for Motorsports

Overview
Provides products with superior durability and performance for the motorsports market.
Competitiveness
Application of top-tier technologies from F1 and beyond
Customers
  • McLaren F1 Team
  • Toyota GAZOO Racing
  • Other Motorsports Teams
Products
  • High-Performance Brake Calipers
  • Master Cylinders
  • Heat-Resistant Materials and Braking Systems

OEM and Parts Supply for Replacement Market

Overview
Stably supplies a wide range of products to the replacement parts market.
Competitiveness
Rapid supply chain and quality control
Customers
  • Auto Repair Shops
  • Parts Retailers
  • Vehicle Inspection Services
Products
  • Brake Pads
  • Rotors
  • Replacement Calipers

Competitive Advantage

Strengths

  • Strong market share domestically and internationally
  • High R&D capabilities and patent holdings
  • Relationships with major automakers like Toyota
  • High reliability of Shinkansen brakes
  • Global production and supply network
  • Application of motorsports technology
  • Long track record in the industry
  • High product quality control
  • Diverse product lineup
  • Experienced management team

Competitive Advantages

  • Maintains about 40% share in the domestic brake pad market
  • Holds strong market dominance in Shinkansen emergency brake parts
  • Possesses cutting-edge technology, such as supply to McLaren F1 team
  • Stable supply relationships and trust with major automakers as strengths
  • Global production and sales network covers diverse markets
  • Strengthened management base through business revitalization ADR
  • Differentiation through integration of high-performance materials and electronic control technology
  • Product development capabilities to meet diverse customer needs
  • Proactive development of products compliant with environmental regulations
  • Technological innovation from long-term motorsports activities

Threats

  • Risk of reduced demand due to lower automotive production
  • Challenges in regaining trust from inspection data falsification issue
  • Cost increases from rising raw material prices
  • Share competition with global rivals
  • Increased product development costs due to stricter environmental regulations
  • Profit volatility risk from exchange rate fluctuations
  • Rise of local competitors in emerging markets
  • Lingering risks from business revitalization process
  • Risks of supply chain disruptions or delays
  • Decline in competitiveness from delayed technological innovation

Innovations

2021: Development of High-Durability Brake Pads Using New Materials

Overview
Adopted new materials to improve heat resistance and durability of friction materials.
Impact
Achieved extended service life and reduced maintenance costs.

2022: Development of Lightweight Brake Systems for Electric Vehicles

Overview
Developed compact and highly efficient braking systems dedicated to EVs and hybrid vehicles.
Impact
Contributes to improved vehicle fuel efficiency and reduced environmental impact.

2023: Development of New Brake Calipers for McLaren F1

Overview
Provided newly designed high-performance brake system for the 2023 season.
Impact
Contributed to improved competitiveness of the McLaren team.

2024: Performance Improvement of Shinkansen Brake Linings

Overview
Developed next-generation products balancing braking performance and wear resistance through new materials.
Impact
Achieved further enhancement of safety and cost reductions.

2022: Strengthening of Digital Inspection Data Management System

Overview
Fully renewed digital management system in response to past inspection data falsification.
Impact
Significantly improved reliability of quality management.

Sustainability

  • Development and expanded adoption of lead-free friction materials to reduce environmental impact
  • Promotion of CO2 emission reduction programs in production processes
  • Improvement of waste recycling rate and waste reduction efforts
  • Strengthening employee health and safety management and improving work environment
  • Implementation of environmental beautification activities in collaboration with local communities