Denso Corp. said May 24 that it will bank on electrification and automated driving to fuel the company's growth through 2030 as it aims to generate ¥7 trillion in sales by fiscal year 2025.
The Japanese auto parts retailer said it is targeting an operating income ratio of 10% by fiscal year 2025. In fiscal year 2021, Denso hopes to record ¥5.6 trillion in sales and an operating income ratio of 8% or more.
Under its long-term policy for 2030, the company said it will continue to work on vehicle electrification and automated driving, as well as form collaborations in order to seek emerging areas where it can improve mobility.
Denso recently forged a partnership with Japanese carmaker Toyota Motor Corp. to transfer electronic components operations to Denso. Separately, the company took part in a US$1 billion funding round for Uber Technologies Inc., alongside Toyota and SoftBank Group Corp. Denso also noted its nearly US$100 million investments in startups over the last four years.
The company plans to double the revenue from its electrification business by fiscal 2025 from ¥900 billion in fiscal 2018. In April, Denso committed to spending ¥180 billion through 2020 in its electrification offensive.
In addition to electrification, Denso is also bullish on its mobility business. "We see substantial opportunities in mobility-as-a-service," Hirotsugu Takeuchi, senior executive officer and head of Denso's Mobility Systems unit, said in a statement.
The parts supplier recently led a US$20 million series A funding round in California-based electric bike-sharing startup Bond Mobility Inc. to develop micromobility services for urban transportation. In March, the automotive parts supplier also pumped US$5 million into U.S. connected car services provider Airbiquity Inc. to ramp up the development of over-the-air systems.
As of May 24, US$1 was equivalent to ¥109.29.