Japanese suppliers in China: Strengthening production and development of parts for NEVs

Activities in China in the Northeast, North China, Central China, South China and Southwest regions

2020/10/09

Summary

華東周辺
China automobile plant map (Click to open site map)
South China / Central China / North China / Southwest China / Northeast China


  This report covers the activities of Japanese suppliers in the regions of Northeast China, North China, Central China, South China, Southwest China, and China in general. (The report covers activities occurring in the approximately 16-month period from April 2019 to July 2020.)
*Please refer to the report Japanese Suppliers in East China: Increasing Capacity for NEV Market.

 

  The headquarters of BYD Co., Ltd., which is the largest EV manufacturer and has an EV joint venture with Daimler, the GAC Group’s GAC New Energy Automobile Co., Ltd., and Guangzhou Xiaopeng Motors Technology Co., Ltd., an emerging EV manufacturer, among others, are located in South China's Guangdong Province. Among foreign-affiliated companies, GAC Toyota will expand its plant in Guangzhou for NEVs, with the aim of starting operations in 2022.
  Wuhan in Hubei Province, in the Central China region, has become a hub for the automotive industry. In addition to the headquarters of the Dongfeng Motor Group, the area is also home to the manufacturing sites of foreign-affiliated companies such as Dongfeng Nissan, Dongfeng Honda, and SAIC-GM.
  In the North China region, in addition to Beijing Electric Vehicle Co., Ltd. (BJEV) and Great Wall Motor, there are the manufacturing sites of foreign-affiliated companies such as Tianjin FAW Toyota and Beijing Hyundai.


  As a result of the COVID-19 pandemic, Piolax, Yorozu and other Japanese suppliers were forced to temporarily suspend or close production at plants in Wuhan, Hubei Province, but these returned to normal operations in March and April. Muro Corporation temporarily suspended the construction of a new plant in Hubei Province, but has stated that there has been no change to their original plan. The Azbil plant located in Dalian, Liaoning Province, in North China, has continued to operate while utilizing telework and other measures.


  Looking at trends related to new energy vehicles (NEVs), new plants have been established such as Nidec's plant to manufacture traction motors for EVs and JFE Chemical's plant for EV battery anode materials. Among existing Japanese suppliers in China, Keihin expanded its plant for new PCUs for electrified vehicles and Denso expanded its plant for electronic components for NEVs. Also, Panasonic installed new lines for the production of high-capacity prismatic lithium-ion batteries and servo motors. In addition, Next Energy has partnered with CATL on storage battery development.
  In addition, a number of other suppliers have been introducing new products and services to meet the needs of the Chinese market, particularly those related to CASE (Connected, Autonomous, Shared, and Electric), such as Marelli's business alliance with BlackBerry for integrated cockpit systems in China.

 

Japanese supplier activities in China (*Introduction of new products):
New company (plant)
establishment and operation
Hubei Province H-one Co., Ltd. (*High-tensile strength steel stamped parts: Established joint venture)
Muro Corporation (*Gear parts: Establishment of a new company and a new plant)
Unipres Corporation (Stamped auto body parts: New company and new plant)
Kasai Kogyo Co., Ltd. (Interior and exterior parts: New joint venture and new plant)
Inner Mongolia Autonomous Region JFE Chemical Corporation (*Anode material for EV batteries: Joint venture and new plant)
Guangdong Province Aisin AW Co., Ltd. (6-speed AT: Postponed operation of new company and new plant, and revisited production capacity)
Idemitsu Kosan Co., Ltd. (High performance lubricants: New company and new plant)
Tamura Corporation (*Booster-reactors for NEVs: New company + new plant)
Nidec Corporation (*Traction motors for EVs: Joint venture + new plant)
Kasai Kogyo Co., Ltd. (Interior and exterior parts: New joint venture and new plant)
Marelli Corporation (Electrification of products such as car air conditioning units: Plans to establish a joint venture company in Hong Kong)
Production
capacity
increase
Activities such as
investment in
production lines and
equipment, etc.
Nationwide NSK Ltd. (*Ball screw for electro-hydraulic brake systems: Installed special equipment)
Liaoning Province Panasonic Corporation (*High-capacity lithium-ion car batteries for automotive applications: Installed production line)
Henan Province Unipres Corporation (*Hot stamping: Established new line)
Hubei Province KYB Corporation (Electric power steering: KYB will withdraw from production in Japan and restructure production mainly in China.)
Piolax, Inc. (*Driveline parts: New line)
Guangdong Province Alpha Corporation (*Remote door key unit for trucks: Enhanced equipment)
JFE Steel (Hot-dip galvanized steel sheets: Plant was partially remodeled to increase production capacity)
Takagi Seiko Corporation (Plastic parts, etc.: Painting line expansion)
Panasonic Corporation (*Servo motor production line was added to the existing plant, creating a second plant)
Unipres Corporation (*Hot stamp: 2 lines introduced)
Plant and building
expansion
Liaoning Province Azbil Corporation (Valve products: New plant)
Nidec Corporation (*EV drive motor: Established new plant and development site)
Hubei Province Toyoda Gosei Co., Ltd. (Weatherstrip: Building expansion)
Yorozu Corporation (Stamped parts: new leased plant)
Hebei Province Z-Max Co., Ltd. (Peltier device modules: New plant, partly moved from existing plant)
Guangdong Province Keihin Corporation (*New PCU for electric vehicles: New plant)
Denso Corporation (Electronic Components for NEVs: New plant)
Honda Tsushin Kogyo Co., Ltd. (Automotive camera connectors: New plant construction and relocation)
Mitsui Mining & Smelting Co., Ltd. (*New catalysts for passenger cars: Constructed new building)
Chongqing city Neturen Co., Ltd. (High strength spring steel wire: No. 2 Plant)
Sichuan Province Sanden AS (Car air-conditioning unit for SUVs: Branch plant of a joint venture company in Tianjin)

Strengthening and
restructuring of the business structure
(Collaborations, R&D,
joint ventures,
integration of subsidiaries,
sales structure,
and end of production)

Nationwide Kyowa Leather Cloth Co., Ltd. (Strengthening its exterior film product lineup: Strengthening its Sales function)
Koito Manufacturing Co., Ltd. (Ramp up: Expansion of R&D personnel in Guangzhou and Fuzhou, etc., and establishment of new R&D sites)
Next Energy & Resources Co., Ltd. (Storage battery development: Business partnership with CATL)
Marelli Corporation (Integrated vehicle cockpit systems: In partnership with Canada's BlackBerry)
Guangdong Province JFE Steel Corp. (*Specialty bar steel: Capital participation and joint venture in place)
Futaba Corporation (Production of OLED displays has been discontinued and production concentrated in Japan)
Yutaka Giken Co., Ltd. (Exhaust systems and driveline components: 2 subsidiaries combined)

(Reference source materials: Company PR information, news reports)


Related Reports:
Revisions to China NEV (New Energy Vehicle) Credit Policy (Sep. 2020)
China Market H1 2020: Sales of New Vehicles Fall to 10.23 Million Units (Aug. 2020)
Major Chinese OEMs: Production and Sales Recovery in May-June 2020 (Jul. 2020)
Development Strategy for China’s Smart Car Innovation (May 2020)


Overseas business activities of Japanese suppliers:
  Japanese Suppliers in East China: Increasing Capacity for NEV Market (Sep. 2020)
  Japanese suppliers in Western Europe: Responding to advancements in CASE technologies (Apr. 2020)
  Japanese suppliers in India: Responding to stricter emission regulations and EV policy (Nov. 2019)
  Japanese suppliers in U.S. and Canada: Expanding CASE business and local collaboration (Sep. 2019)
  Japanese suppliers in ASEAN: Components and materials for electrification on the rise (Aug. 2019)
  Japanese suppliers in China: Expanding the supply of parts and materials for NEVs (Jun. 2019)
  Japanese suppliers in Central and Eastern Europe: Responding to orders from European OEMs (Jun. 2019)
  Japanese Suppliers in Mexico: Focusing on Changes to NAFTA (Oct. 2018)