Japan Corporate History & Strategy

Auto Parts

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Japan's auto parts industry developed through keiretsu (affiliated supply chain) relationships with automakers, with Toyota Group companies such as Denso, Aisin, and Toyota Industries achieving global scale. Denso grew into the world's second-largest parts maker in thermal systems and powertrain controls, with revenue exceeding $40 billion. Aisin maintained a top global share in automatic transmissions but faces structural challenges from declining AT demand due to EVs. Outside the keiretsu, Bridgestone holds the world's No. 1 position in tires with over $30 billion in global revenue. The EV shift and CASE (Connected/Autonomous/Shared/Electric) transformation are simultaneously reducing engine-related parts demand while increasing the importance of software and electronic components—marking a turning point where traditional 'integral architecture' expertise alone is no longer sufficient.

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