Denso Corp has set itself a target of Y150 billion (US$1.3 billion) in Chinese sales by 2010, up fourfold from fiscal 2005, according to a report today.
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Japan’s Nikkei Report said the supplier has set aside Y30 billion in investments from fiscal 2006 to fiscal 2010. The money will be used to grow Chinese production of car air conditioners and engine parts to meet growing demand. However, at present it doesn’t have plans to open local factories, instead focussing on upgrading facilities and raising efficiency.
The company is also looking to lower its cost base by increasing local procurement from 40% today to 60% by fiscal 2008.
Denso has more than 20 manufacturing facilities in China.
