[YesAuto Industry] According to “Nihon Keizai Shimbun”, Denso will build a new plant for new energy auto parts in China. The total investment will reach 2 billion yuan, and it is expected to be put into operation in 2021. This is Denso's response to the growing demand in China, the world's largest pure electric vehicle market, and it is expected that the supply of parts and components will expand to Japanese automakers.
It is reported that Denso Guangzhou and the Guangzhou government have recently reached an agreement to build a factory. It is planned to build a factory with a total construction area of approximately 100,000 square meters. The company did not disclose specific product categories and production capacity, but said it will be put into operation in 2021 and mass production will begin in 2022.
Denso is Japan's largest auto parts manufacturer. Its main products include engine systems, air conditioning systems, body systems, driving safety systems, and information and communication equipment. At present, Denso has more than 30 group companies in China, involved in the production of car air conditioners and engine parts.
Prior to this, Denso plans to invest about 180 billion yen in hybrid electric vehicle (HEV) and other electric vehicle parts worldwide by the end of 2020. In the United States, the company will invest in a plant in Tennessee to improve its production system for inverters for hybrid vehicles.
As early as January 1, 2019, Denso announced that it would adjust its organizational structure. In its official announcement, Denso mentioned that due to the development of electrification, autonomous driving and intelligent networking, the automotive industry is undergoing a once-in-a-century change. . In order to achieve rapid transformation, the company will adjust its organizational structure to improve its competitiveness in the future. The content of the rectification will involve multiple businesses such as mobile travel, thermal systems and power systems.