Japanese automotive supplier Denso has unveiled ambitious revenue targets, aiming to achieve 1.2 trillion yen (USD 7.97 billion) from electrification by the 2025 business year. The company has set an even more ambitious target of 1.7 trillion yen by the turn of the decade, signalling a significant push towards advanced technologies.
Revenue growth in ADAS
Denso plans to bolster its revenue from advanced-driver assistance systems (ADAS) to 520 billion yen by the 2025 business year. The company is strategically positioning itself in the evolving landscape of automotive technology.
Unwinding cross-shareholdings
As part of its growth strategy, Denso will further unwind cross-shareholdings. The company is committed to maintaining agility and adaptability in the rapidly changing automotive market.
Factors driving revenue growth
Denso’s Chief Financial Officer, Yasushi Matsui, attributes the upward revision of the 2025 revenue target to steady expansion in the sales of inverters, thermal management, and power supply systems. Additionally, a favourable impact from a weakened yen has provided a tailwind to Denso’s financial outlook.
“As electrification centred on battery electric vehicles progresses from the 2025 business year onward, we want to reach 1.7 trillion yen by 2030 by expanding sales globally,” Matsui stated, underlining Denso’s commitment to contributing to the evolving landscape of electric mobility.
Strategic reduction of cross-shareholdings
Denso has been at the forefront of reducing cross-shareholdings, maintaining a strategic and adaptable financial stance. The company currently holds 18 cross-shareholdings as of the latest update.
Investment in semiconductors and software workforce boost
Reiterating its commitment from October, Denso plans to invest approximately 500 billion yen in semiconductors by 2030, recognizing their critical role in the future automotive landscape. The company also pledges to enhance its software capabilities by increasing the number of workers to around 18,000 people by 2030, reflecting a 1.5 times increase from the current level.
Denso’s strategic vision positions it as a key player in the transformative phase of the automotive industry, where electrification and advanced technologies take center stage.