Ichikoh Industries

Basic Information

Stock Code: 7244
Industry: Electrical Equipment
Category Detail: Auto Parts
Prefecture: Kanagawa Prefecture
Establishment Year: December 1939
Listing Year: October 1961
Official Website: https://www.ichikoh.com/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: MDV, NGK Spark Plug, Sumitomo Electric Industries, Sanden, Hoshiwa Electric, Tokyo Cosmos Electric, Stanley Electric, Tokai Rika, Imasen Electric Industrial, Koito Manufacturing, Hirex Corporation, Mitsuba, NJ Holdings

Overview

Founded in 1939, Ichikoh Industries is a major Japanese automotive parts manufacturer in the electrical equipment industry, specializing in automotive lighting and mirrors.

Current Situation

In the fiscal year ending December 2023, Ichikoh Industries recorded consolidated sales of approximately 145.9 billion yen and operating profit of about 7.4 billion yen, advancing global expansion through overseas production bases. As a subsidiary of the French automotive supplier Valeo, it boasts a high market share in the domestic OEM parts market alongside Koito Manufacturing and Stanley Electric, particularly in headlight bulbs and assemblies. It has pioneering achievements such as developing the world's first electric retractable door mirror. Recently, it has focused on exclusive sales agreements for backup cameras and restructuring manufacturing operations. By selling its subsidiary PIAA, it is concentrating management resources on the lighting business to further strengthen competitiveness. Through strategic business reorganization, such as the March 2024 announcement of the subsidiary sale, it is promoting sustainable growth and competitive superiority in the future while continuing to enhance quality and R&D.

Trivia

Interesting Facts

The company that developed the world's first electric retractable door mirror.
Founded in 1939 with over 80 years of history as an automotive parts manufacturer.
Expanding globally as a subsidiary of French giant Valeo.
Established company with high share in domestic OEM headlight parts.
Subsidiary PIAA was a famous car accessory brand but sold in 2024.
Actively expanding overseas production with manufacturing bases in Asian countries.
Handles not only automotive lamps but also rearview mirrors as main products.
Previously closed multiple plants and reorganized production system.
Long-term corporate credibility as a Tokyo Stock Exchange Prime listed company.
Acquires cutting-edge technology through partnerships with tech partners.

Hidden Connections

Shares the OEM lamp market in three parts with peers Koito Manufacturing and Stanley Electric.
Became a foreign-owned company through public tender offer by French Valeo.
Expanding new business through exclusive sales agreement with Elmatec for commercial vehicle backup cameras.
PIAA competes with Polarg (Koito-affiliated) and Raybrig (Stanley Electric-affiliated) in car accessory market.
Many products adopted as OEM by domestic automakers.
Secures cost competitiveness with manufacturing bases domestically and internationally.
Closely linked with global automotive parts industry through holding company structure and business partnerships.
Has history of investigation by Fair Trade Commission regarding antitrust issues.

Future Outlook

Growth Drivers

Expanding demand for innovative lighting technology for electric vehicles.
Increasing automotive demand in overseas markets, especially Asia.
Demand for sensor integration with ADAS and autonomous driving technology.
Advancement in technology for lightweight and energy-saving parts.
Strengthened technological collaboration with Valeo Group.
Value enhancement through development of high-quality, environmentally friendly products.
Expansion of digital control parts lineup.
Brand value strengthening in aftermarket.
Increased demand for high-function lighting due to stricter safety regulations.
Promotion of market introduction of products compliant with environmental regulations.

Strategic Goals

Expand global sales scale to over 200 billion yen.
Achieve top 3 world share in electric retractable mirrors and LED lighting.
Significant reduction in environmental impact through sustainability goals.
Establish development and mass production of autonomous driving-compatible products.
Promote digitalization and smart factory transformation of manufacturing sites.
Double aftermarket sales and strengthen brands.
Increase R&D investment ratio to over 10% of sales annually.
Achieve industry-leading ESG evaluation.
Expand sales networks and local production in emerging markets.
Foster diverse talent and utilize global human resources.

Business Segments

OEM Parts Manufacturing for Automakers

Overview

Business supplying high-quality OEM parts to automakers worldwide.

Competitiveness

Advanced design technology and stable quality control

Customers

Domestic Automakers
Overseas Automakers
Automotive Parts OEM Manufacturers
Automaker-Affiliated Suppliers

Products

Headlight Units
Rearview Mirrors
Taillights
Lighting Control Units
Backup Camera Products

Aftermarket Product Supply

Overview

Business distributing high-quality car accessories nationwide at OEM-equivalent levels.

Competitiveness

Extensive brand portfolio and broad distribution network

Customers

Car Accessory Stores
Repair Shops
Automobile Dealers
General Consumers

Products

Aftermarket Lighting Parts
PIAA Brand Parts
Replacement Mirrors
Car Fashion Accessories

Products for Special and Commercial Vehicles

Overview

Field specializing in manufacturing and development of lighting for special-purpose vehicles.

Competitiveness

Durability-focused design and diverse customization capabilities

Customers

Truck Manufacturers
Bus Manufacturers
Construction Machinery Manufacturers
Logistics Companies

Products

Commercial Vehicle Headlights
Work Lights
Warning Lights
Backup Cameras

In-Vehicle Electronic Control System Development

Overview

Providing in-vehicle systems utilizing advanced electronic control and sensor technology.

Competitiveness

Technological strength and collaboration with Valeo Group

Customers

Automakers
Parts Suppliers
Development Outsourcing Companies

Products

Lighting Control Systems
Proximity Sensors
Sensors for Autonomous Driving Support

Contract Manufacturing and OEM Business

Overview

Offering contract manufacturing services from reliable factories.

Competitiveness

Domestic and international manufacturing base network

Customers

Other Automotive Parts Manufacturers
Overseas Suppliers

Products

Lamp Unit Assembly
Mirror Assembly
Electronic Component Manufacturing

Overseas Market Product Expansion

Overview

Strengthening manufacturing and sales in overseas markets such as Southeast Asia.

Competitiveness

Overseas manufacturing/sales network and local adaptability

Customers

Overseas Automakers
Local Dealers
Exporters

Products

Various Automotive Lighting
Mirror Parts
Backup Cameras

Competitive Advantage

Strengths

Long track record of technology in automotive lighting
Development of the world's first electric retractable door mirror
Global expansion under Valeo Group
Advanced quality management system
Diverse product lineup
High share in domestic OEM market
Efficient production utilizing overseas bases
Technology enhancement through partnerships
Strong brand recognition
Stable sales in aftermarket sector

Competitive Advantages

Strong transaction relationships with major domestic automakers
Commercial vehicle expansion leveraging exclusive backup camera sales agreement
Integrated high-tech system from design to manufacturing
Rapid response via multi-site production for global markets
Brand superiority as pioneer in electric retractable door mirror technology
Improved competitiveness through technical support from parent Valeo
Risk diversification through broad product categories
Provision of high-quality aftermarket products
Cost competitiveness from accumulated manufacturing expertise
Diversified product offerings adapting to market segmentation

Threats

Changes in product demand due to electrification in automotive industry
Impact of global semiconductor shortages
Intensifying technological innovation and price competition from rivals
Costs to adapt to stricter environmental regulations
Sales instability from overseas economic fluctuations
Profit pressure from exchange rate fluctuations
Requirements for new technologies with spread of autonomous driving
Legal risks related to antitrust laws
Supply chain logistics delay risks
Order reductions from production adjustments by major customers

Innovations

2024: Concentration of Management Resources through PIAA Share Sale

Overview: Sold shares of aftermarket subsidiary PIAA to Usami Mineral Oil to focus resources on lighting business.
Impact: Aims to improve profitability by strengthening lighting operations.

2023: Exclusive Sales Agreement for Commercial Vehicle Backup Cameras

Overview: Entered agreement with Elmatec to start exclusive sales of backup cameras for commercial vehicles.
Impact: Contributes to business expansion and entry into new markets.

2022: Review of Production Restructuring Plan

Overview: Implemented fundamental review of production system for base reorganization and efficiency.
Impact: Achieved production cost reductions and quality improvements.

2021: Development of New Headlights Utilizing LED Technology

Overview: Commercialized energy-saving, high-brightness LED headlight units.
Impact: Enhanced market competitiveness and environmental compliance.

2020: Strengthened Business Collaboration with Valeo

Overview: Implemented comprehensive business partnership with Valeo in lighting equipment field.
Impact: Advanced product development capabilities through technology exchange.

Sustainability

Improvement of manufacturing processes to reduce environmental impact
Promotion of energy-efficient LED lighting products
Waste reduction and recycling at manufacturing sites
Enhanced environmental considerations across supply chain
Employee environmental awareness and local contribution activities
ISO14001 environmental management system certification
Contribution to vehicle energy savings via electric retractable mirrors
Resource conservation through product longevity
Consideration of sustainable procurement standards
Strengthened green procurement and environmental regulation compliance