Denso targets 6.3-billion-euro sales in electrification products by FY2025

Japanese component and technology major Denso, which is celebrating its 50th year in Europe, is among the many global auto majors at the IAA Mobility 2023 trade fair, which opens today in Munich and goes on till September 8.

Speaking at a press conference yesterday, Shinnosuke Hayashi, President and COO of Denso Corporation, said: “Europe is leading the changes in the mobility industry for environment and safety. Denso will work with the European partners in this era of change, and provide new values globally.”

Denso has a three-pronged strategy for the future. Denso president and COO Shinnosuke Hayashi said: “We are working on three areas: Reduction of CO2 emissions from our mobility products, manufacturing process, and utilisation of energy. In this global movement toward carbon neutrality, Denso will focus on the electrification of mobility.”

“For that, we continuously challenge to develop technologies in CO2 emission-reducing mobility products and secure production lines ahead of other companies. Awareness of environment is increasing globally, and vehicle electrification has accelerated fast, especially the battery-electric vehicles. Now, we project about 50% of the vehicles in China, North America, and Europe to be battery-electric vehicles by 2030.”

“In technological development, Denso’s semiconductor and energy management system play a big role. We have more than 50 years of experience and knowledge in the field of vehicle semiconductors. We have great experience and knowledge of thermal management technologies used in our vehicle air-conditioning systems. Our thermal management technologies contribute to efficient solutions for battery-electric vehicles development.”

TARGETING CARBON-NETURALITY OF SUPPLY CHAIN BY 2050

Shinnosuke Hayashi continued, “For all these products and technologies, of course, it is important to secure production lines. We are using our manufacturing experience and have delivered more than 20 million inverters worldwide until today. Also, we will provide 12 million a year by FY2025.We are also improving our global production capacity, especially in North America and China, and start producing inverters in Denso Manufacturing Hungary within this fiscal year. With these efforts, we will contribute to carbon neutrality and aim for 1 trillion yen – over 6.3 billion euros – in electrification products sales by FY2025.”

“The second initiative for carbon neutrality is reducing CO2 emissions in our manufacturing process. At the end of 2020, we set a goal to achieve carbon neutrality by 2035. Since then, we focused on this goal and, last year, we achieved it at our plants across Japan and Europe. Last month, we

also announced a goal of Scope 3, to achieve carbon neutrality of the whole supply chain by 2050. We will actively lead it for this goal.

“And thirdly, the utilisation of energy. We have already developed technologies for the utilisation of energy in our plants in Japan, we collect and reuse CO₂ and utilize hydrogen, such as Solid Oxide Fuel Cell and Solid Oxide Electrolysis Cell. In the near future, we will also extend these efforts to our plants in Europe. We will develop these utilizations of energy not only within our company or the automotive industry but also in other areas.”

From these three initiatives, I hope you can see our effort to contribute to the carbon neutrality of the whole society. We know carbon neutrality is a global challenge, and it is also a big commitment to us.

Denso, which is a global automotive parts manufacturer that provides advanced automotive technologies, systems and products, plans to invest 10 trillion yen or over 63 billion euros, in the next 10 years towards cleaner and green mobility products.