Analysis Report: Brakes (Japanese Market)

Go to Brakes (E.U. and U.S. Market)

Brakes are the system that controls the key operation of “stopping”. This function requires a high level of safety, so production controls and quality assurance are critical. This report deals primarily with foundation brake parts, specifically the three mechanisms making up disc brakes and the three that make up drum brakes (drum brake components listed only by equipped status). The components of ABS and ESC systems, such as brake boosters, brake pedals, and support brakes, are not handled in detail in this report.

In most four wheel vehicles, the front-rear brake power balance is typically set to a ratio of seven to three. Given this fact, and that FF cars are more popular these days, the majority of vehicles use disc brakes for the front wheels. For the rear wheels, around half of all regular and subcompact vehicles with engines over 1.5L use disc brakes as well, while many mini vehicles, small commercial vehicles, and small economy cars use the cheaper drum brake systems. Based on this we can see that disc brake systems and their components comprise about 75% of the Japanese brake market, while drum brake systems and their components make up the remainder. While this report focuses on the Japanese market, a majority of the companies are now operating globally so worldwide viewpoints in terms of facilities and sales are also included.

1) Supplier Overview

Akebono Brake

• Group: An independent supplier of brake systems and parts.
• Businesses: Of the six main components handled in this report, the company produces four: disc calipers, disc pads, drum brake shoes, and linings.
• Customers: Supplies all Japanese OEMs, including those making commercial vehicles, and also does business with GM, Ford, Daimler, and other European and American OEM makers.
• Aftermarket: Akebono has strengths in the maintenance segment, as highlighted by the fact that their share of the disc pad aftermarket is about 40%, despite their supply share being just under 20%.
• Global Facilities: One of Akebono’s characteristics is its active approach to global expansion. After establishing its first overseas operation as a joint venture for production in the U.S. with GM, the company has constructed plants in North America, Asia, and Europe. Foreign sales in March 2017 reached over 65% of the total for the company.
  Akebono renewed its organizational structure in 2016. It changed the previous vertical division by work content system to a new horizontal system based on the type of product being made. The company hopes that by clarifying the rights and responsibilities for each product line it can improve efficiency and global production activities. There was some chaos within U.S. production leading to two consecutive loss periods in the region just after 2014, which was a major catalyst for the move to the new system. Akebono’s aim is to reduce the distance between production and sales so that new orders can be fulfilled smoothly and profits increased.
  The supplier’s share in the OEM disc brake pad segment was 40% in Japan and 19% globally (third rank) in March 2014. It has targeted a global share of 30% by 2021.
  North Amercia Business
  • North America sales make up around 75% of all overseas sales for the company, but as mentioned above there were some loss periods and Akebono hopes to return to the black in FY 2017. The main cause of the losses was trouble that occurred due to accepting excessive amounts of orders, which led to issues in production and cost overrun.
  • The company acquired foundation brake businesses in the U.S. from Robert Bosch in December 2009, and in March 2014 GM was the largest customer with a 25% share, followed by Nissan with 13% and Toyota with 12%. There were also plans around 2010 for Akebono to acquire Bosch business in Europe, Asia, Australia, and South America, but Akebono determined that these would not match their strategic vision and so negotiations were terminated.
  • In light of the expected increase in demand from Japanese, U.S., and European OEMs, Akebono set up a new production subsidiary in Mexico called Akebono Brake Mexico S.A. de C.V. in 2012.

    Europe Business

• Sales in Europe make up just 5% of overseas totals. The company aims to expand its presence in the region by producing high quality brakes for European OEMs.
• It also plans to increase the number of sales and development working in the region to 150 people by 2020, which is about three times the current number. With this the company hopes to attract new sales contracts from many potential customers.
• The company is constructing a new plant in Slovakia that is planned to come on stream halfway through 2018. This facility would handle casting, processing, and assembly of aluminium brake calipers. Currently aluminium brake calipers are being produced in the U.S. and imported for sale in Europe, so the company expects that this new plant will help to reduce procurement and shipping costs and increase competitiveness in the segment.

    Business in Developing Countries

• To meet the needs of developing countries Akebono is in the process of localizing areas such as development, cost reduction, procurement, and production.
• The company has also strengthened operations in China to supply major customer Nissan and attract new orders from GM and other Japanese makers, raising monthly production on its seven caliper lines to 350,000 units.

• Product R&D
  • Electrification: Akebono is currently developing and electric parking brake (EPB) slated for release in 2019. Other companies have already commercialized EPBs so Akebono is late to the segment, but ADVICS is the only one that is currently mass producing them so there is room to compete. The company is also considering a drum type EPB system.
  • Weight Reduction: The company has developed lightweight aluminium brake calipers for subcompact cars and presented them to Japanese OEMs, and hopes to commercialize in 2019. Current aluminium brake calipers are mainly used in high performance vehicles due to their cost, but Akebono aims to differentiate itself from competitors by creating next-generation lightweight products suitable for mass produced vehicles.
  • Copper-less Friction Materials: Akebono is developing brake pads without copper to comply with new environmental regulations in California (SB-346) and Washington (SB-6557) that are to be introduced in stages in 2021 and 2025. The company aims to have a next-generation material ready for use by 2018. Development will start from the basic materials stage, and the company will attempt to balance the high quality required of friction materials with concerns such as brake squeal and the amount of brake dust released. Brake pad materials are typically divided into non-organic asbestos and low-steel types, depending on the amount of friction necessary. Akebono hopes to combine the strengths of these two types in its new high value added material, which it expects will be adopted by luxury vehicles.
  • Standardization: The company plans to standardize designs for next-generation brake calipers by 2018. Until now designs were made depending on the model that the brakes would be equipped on. By standardizing designs for parts and processes Akebono hopes to cut production costs and make it easier to improve parts by reducing weight. The company is already supplying standardized calipers in the European market, and will utilize its know-how to bring the process to other regions. The final goal is to increase profits and improve products for future business growth.

ADVICS

• Group: A subsidiary of Aisin Seiki and member of Toyota Group.
• Business: General brake systems maker
  • Produces brake control systems, and four types of products covered in this report through various partners. These are disc rotors (Aisin Takaoka), disc calipers (partially through Hosei Brake Industry), disc pads, and drum brake shoes (Hosei Brake Industry). ADVICS covers most Toyota models, so their domestic market share for each of these products is between 30 and 40%, giving them top ranking.
  • For ABS/ESC control system components, excluding vehicle speed sensors, the company also holds the top position with a share of 50%. Competition in this segment with European makers such as Continental and Bosch is heating up, so ADVICS is looking to strengthen its supply of ABS/ESC systems for subcompact cars to expand its business.
  • Brake production operations at the Kariya Plant, along with domestic and foreign production subsidiaries, were transferred from parent Aisin Seiki in 2010. This has allowed ADVICS to streamline the development – production – sales process and increase competitiveness.
  • ADVICS announced plans to make Hosei Brake Industry into a subsidiary with an investment ratio of 50.1%, which is scheduled to occur in February 2018. It also announced that Hosei Brake Industry will take over foundation brake business from Nisshinbo Brake. This deal will further enhance Hosei Brake Industry’s specialization in the drum brake segment.
  • ADVICS recorded sales of JPY 555.4 billion in March 2017, with operating profits of JPY 6.1 billion.
• Customers: Supplies mainly to the Toyota Group, but also covers Nissan, Honda, Suzuki, Mazda, and other Japanese makers.
• Global Facilities: The company did not possess production facilities until 2010. Below is the list of developments since then.
  • Facilities in Japan
    • With the reorganization, production was centralized by product type. This will increase production efficiency and competitiveness.
    • Aisin Seiki and ADVICS began work on a new plant in Handa, Aichi in February 2015. Supervision of brake production was handed over to ADVICS from Aisin Seiki and Denso, so a new plant within Aisin Seiki’s Handa facility was necessary. Aisin Seiki constructed the new plant with an investment of JPY 11 billion, and then lent it to ADVICS. The new plant produces mainly ESC systems, regenerative cooperative brakes, and brake boosters. The production area of the new plant is 37,600 square meters, and the office space is 6,750 square meters. The plant had 200 employees as of 2016.
  • Overseas Facilities
    ADVICS owned four plants in China, three in the U.S., two in India, and one in each of Mexico, Brazil, Czech Republic, Thailand, South Africa, and Indonesia in April 2016. Newly established facilities are listed below.
    • U.S. and China: The first plants outside of Japan, they produce electric parking brake systems.
    • Mexico: A plant was established in Lagos de Moreno, Jalisco with a cost of JPY 1.5 billion.
    • Brazil: ADVICS established a production line at Aisin Seiki’s plant in Itu, Sao Paolo, with a total cost of JPY 4.1 billion.
    • Indonesia: The company and Aisin Seiki are each building plants on land obtained by the Aisin Group in Karawang. Total cost for the two is JPY 7.5 billion.
    • Czech Republic: ADVICS Manufacturing Czech s.r.o. was established to produce brake parts in Pisek in 2015. The first orders came from Daimler-Benz for disc brake calipers for the Mercedes-Benz GLC, E Class, and AMG/C43.
    • South Africa: Establishment of a new subsidiary ADVICS South Africa (Pty) Ltd. Production is in a plant section leased from Toyota Tsusho.
  • Product R&D: As seen below, most of the recent products are foundation brake systems that incorporate advanced control parts.
    • The company announced in July 2017 that it had developed a new state-of-the-art electric parking brake that emits 5% less noise than conventional models. This new system is equipped on Toyota’s new Camry (XV70).
    • A world-first drum type EPB that has the actuator inside the drum was released in December 2014. This system is designed for subcompact cars, and the first model to adopt it was the Honda N-BOX Slash.
    • Toyota announced in 2015 that it had selected a new electronic brake system made by ADVICS for its fourth-generation Prius, which was the first TNGA platform model. This new system was designed for hybrid vehicles and uses a motor and hydraulic brake co-operatively for regenerative braking. It has better energy absorption efficiency when decelerating and hydraulic responsiveness is improved compared to conventional types. These features give the system a smoother feeling when braking and greater energy recovery, which contributes to fuel economy. The new brake is also easily upgradable for use with future advanced driver assistance systems.

Nisshinbo Holdings/Nisshinbo Brake

• One of the large friction material suppliers in Japan. Primarily produces brake pads and linings, and drum brake assemblies.
• Supplies most Japanese OEMs with brake linings, and has a 50% share in the segment.
• The company produces the most drum brake units in the world, but total annual foundation brake sales levels of JPY 15 billion give them only a 10% share.
• With wholly-owned subsidiary TMD Friction Group S.A. supplementing European and North American markets, Nisshinbo holds a 15% share of the global brake friction materials industry.
  • Nisshinbo Brake supplies mainly non-asbestos material disc pads to Japanese and Korean auto makers. Its subsidiary TMD has strengths in development and production of low-steel materials, which are popular amongst European OEMs. Because the two companies focus on different areas they have a large synergy benefit.
  • Nisshinbo Brake was established when Nisshinbo Holdings was formed in April 2009, taking over all brake related functions.
  • The company has some joint brake business with Continental AG.
• Nisshinbo Brake announced on August 30, 2017 that it will take over the foundation brake business from Hosei Brake, which will become a subsidiary of Aisin Group member ADVICS. Hosei Brake is known for its expertise in the area of drum brakes, so Nisshinbo Brake expects it will be able to strengthen its own capabilities in the areas of brake drums, brake electronics, and break friction materials with the acquisition.
• Global Facilities: The company owns plants in China, Thailand, Korea, India, and other Asian countries. It also services North America and Europe through its wholly owned subsidiary TMD Friction Group S.A. Nisshinbo Brake aims to increase knowledge sharing with TMD to improve processes for the procurement of low cost high quality materials.
  • China: Saeron Automotive Yantai Co., Ltd. was set up in Yantai, Shandong as the fifth R&D center in China for the company, in July 2017. The establishment was to aid in supplying Japanese and U.S. OEMs in China with brake friction materials. The new center will support Nisshinbo Saeron Changshu Co., Ltd. in Jiangsu and Saeron Automotive Corporation in Korea to increase the total monthly production levels to 1,200,000 units. Other than foundation brakes, the company has a joint venture with Continental AG in Yangzhou, Jiangsu, which began production in 2015.
  • India: Nisshinbo Brake intends to invest in local break friction material makers to strengthen its presence.
  • Brazil: The company plans to invest JPY 6.4 billion in TMD Friction Group S.A. subsidiary TMD Friction do Brasil S.A. to double sales by 2020.
• Product Development
  • Copper free materials: Nisshinbo Brake is developing copper free products to comply with new environmental regulations in California (SB-346) and Washington (SB-6557) that are to be introduced in stages in 2021 and 2025. The company completed basic development in April 2012 and is in the process of testing and evaluation before moving to the production phase. A product developed by TMD Friction Group S.A. passed initial testing for German makers in June 2013, putting Nisshinbo Brake at the same level of progress in the segment as competitor Akebono Brake.

Nissin Kogyo

• Group: A Honda group company, with Honda holding a 34.65% equity share.
• Business: The company handles a wide range of products like friction materials, core brake component production and assembly, and hydraulic/electric control systems. Autoliv-Nissin Brake Systems (ANBS) was formed on April 1, 2016 as a joint venture with Autoliv. ANBS was established to combine the know-how of Autoliv and Nissin in the areas of brake control and brake apply. The subsidiary will handle development, design, production, and sales of these products and their component parts, and has facilities in Japan, China, Thailand, and the U.S. The total value of these businesses is estimated to be about JPY 58.2 billion (USD 524.4 million). Nissin Kogyo holds 49% of the equity while Autoliv has the remaining 51%. Nissin’s division for these systems will be affiliated with Autoliv Electronics’ department that deals with passive safety electronics, ADAS, and brake control systems.
• Customers: The main customer is Honda, but Suzuki, SUBARU, Daihatsu, Mazda, and Mitsubishi Motors are all supplied also.
• Global Facilities: Nissin Kogyo has plants in the U.S., Europe, China, and India to support Honda’s global production.
  • Japan/U.S.: These facilities are focused on the development of high value-added products.
  • Mexico: Nissin Brake de Mexico, S.A. de C.V. was established in Irapuato in 2012 and began production in 2014, taking over some functions from plants in the U.S. The company hoped to use the new plant to take advantage of the FTA to reduce logistical costs and increase cost competitiveness.
  • Asia, South America: Production of low-cost good for developing markets.
  • R&D Facilities: Construction of a test course extending from Asahikawa to Kamigawa District in Hokkaido was scheduled to be opened in November 2014. The Nissin Kogyo Hokkaido Development Center has an area of 480,000 square meters, and the first stage took an investment of JPY 700 million.
• Product R&D:
  • The electric servo brake designed for the Honda Fit EV that was released for lease sales in July 2012 was improved in 2013 and adopted by Honda’s Fit Hybrid and Accord Hybrid models. The brake system was a result of joint development with Honda, but Nissin Kogyo is actively pursuing sales contracts with other OEMs.
  • New low drag brake calipers that have 85% less friction resistance than usual brake systems were developed for a range of vehicles including mini cars, subcompacts, and large commercial vehicles in September 2012. The new calipers were presented to U.S. and European auto makers, and are estimated to give about 1% better fuel economy than standard brakes.
  • The company announced that Mazda had selected its new aluminium rear brake calipers for use on its new Mazda "Roadster" sports car in May 2015. Nissin Kogyo hopes that this contract will give them a foothold into the business with Mazda and lead to future sales. The units are produced in Nagano and shipped to Hiroshima.
  • A new electric parking brake (EPB) was announced in December 2015. Both disc and drum type are expected to be produced some time in 2017. Drum type EPBs were introduced to the market with the release of Honda’s N-BOX, but this system is a first for Nissin Kogyo. The company expects that this segment will continue to grow in the future and so it has plans to strengthen its capabilities for development and production of EPBs.

Hitachi Automotive Systems (Hitachi AMS)

• Group:　A Hitachi Group company that was split off in July 2009. Hitachi AMS absorbed the brake business of Tokico (component parts and hydraulics) and brake control systems from Hitachi Unisia in 2004.
• Business: Calipers, master cylinder boosters, and ABS/ESC systems and parts are the main product types. Only calipers are detailed in this report, but total supply volume of all products puts the company at around the same level as rival ADVICS. It is also actively trying to introduce new powertrain and chassis products for electric and electronic systems. Hitachi AMS is not content with just being a supplier of foundation brake components, and so is accelerating its efforts in the fields of advanced driver assistance systems, automated driving systems, steering systems, brake control systems, and also suspension. To aid this goal the company established a new Information Safety System Division on April 1, 2016. The new division is composed of the following sections: global business planning section, design and development section, and systems QA section. The starting number of employees is around 200, with more being added in the future as necessary. This division supplied the ECU systems for Nissan’s ProPILOT technology installed in the "Serena" and "X-Trail" in August 2016.
• Customers: Toyota, Suzuki, SUBARU, Nissan and Mazda. Historically the supply share to Nissan was rather high, but lately Hitachi AMS is falling behind Akebono Brake for brake systems and Bosch for control systems.

Hitachi Chemical

• Group: A Hitachi group company. Established as a spin-off of the chemical product division of Hitachi in 1962. Hitachi now holds 51.21% of shares.
• Business: Mainly handles disc pads and brake assembly in the brake segment. Outside of brakes the company makes interior/exterior parts, molded plastics, engine valves and other powder metallurgy parts, lithium ion battery materials, and other chemical materials and components.
• Customers: Nissan, Subaru, Daihatsu, Toyota, Ford (other than Nissan all of these are supplied through Hitachi AMS).
• Production Facilities:
  • Domestic: Previously produced brake friction materials at the Yamazaki Plant in Hitachi, Ibaraki, but consolidated production at the group member Namie Japan Brake’s subsidiary in Namie in March 2009. Japan Brake was made a wholly owned subsidiary in 2012.
  • The sales division of Japan Brake was integrated with Hitachi Chemical in 2013, while the development division was absorbed in 2015.
• Global Facilities:
  • North/South America: To strengthen the company’s position as a leader in the field of automotive friction materials a new subsidiary was established in Mexico in 2008. Hitachi Chemical Mexico, S.A. de C.V. mainly handles production of brake pads.
  • Asia: Hitachi Chemical owns a plant in each of China, Thailand, and India. The Thai Plant was established as a joint venture between Nissin Kogyo and Japan Brake in 2002 as Japan Brake (Thailand) Co., Ltd., and was absorbed into Hitachi Chemical Asia (Thailand) Co., Ltd. in 2015. Foshan J.B. Automotive Products Co., Ltd. was established in 2004 in China. The joint venture with Japan Brake was started in India in 2011 as Allied JB Friction Private Limited (AJF), with Hitachi Chemical holding 51% of shares and Allied Nippon Limited holding the remaining 49%. The Indian Plant came on stream in November 2013.

Japan Brake Industrial

• Group: Part of the Hitachi Chemical group. Honda previously held a 21% share of the company through its subsidiary Nissin Brake, but Japan Brake was made a wholly owned subsidiary of Hitachi Chemical in 2012. The sales division of Japan Brake was integrated with Hitachi Chemical in 2013, while the development division was absorbed in 2015.
• Business: A friction materials maker. Deals with railway carriage parts and industrial machinery outside of the automobile industry. Produces disc pads and lining, and does brake assembly.
• Customers: Honda, Mazda, Suzuki, GM, Ford, and others.
• Production Facilities:
  • Established a joint venture in India in the early 1990’s that is still producing parts. Following that opened plants in Thailand and China. Facilities in Korea and China serve as major bases for technology supply to the Asia region.
  • Closed the Hiroshima Plant in 2014.
  • Japan Brake Thailand, along with three other Hitachi Chemical group companies, was integrated with Hitachi Chemical Asia (Thailand) Co., Ltd. in 2015.

Aisin Takaoka

• Group: Toyota, Aisin group.
• Business: A specialist in the area of metal casting and processing. Primarily produces disc rotors, drums, and other cast metal parts. Also makes aluminium calipers and does assembly of brake corner modules.
• Customers: Toyota group, Suzuki (disc rotors for Toyota go through ADVICS).
• Production Facilities: China, Thailand, and Indonesia have joint ventures in operation, while the U.S. has a subsidiary company set up.

Asama Giken

• Group: Honda owns 80% of shares.
• Business: A cast metal maker. Produces and processes disc rotors and drums.
• Customers: Honda.
• Production Facilities: The U.S. and Indonesia house plants for disc rotor production. Most supply goes to local Honda assembly plants in each region.

Kiriu

• Group: Sumitomo Corporation owns nearly 100% of this company. Formerly a parts supplier for Nissan.
• Business: Brake parts are the main segment, with disc rotors and drums being developed and produced independently. Also makes other metal parts for automobiles including AT oil pumps, cylinder blocks, and various types of brackets.
• Customers: Supplies Nissan, but also supplies Akebono Brake, ADVICS and others on a Tier-2 basis.
• Production Facilities:
  • Japan: Has four production plants, including those owned by subsidiaries.
  • Overseas: The company is aiming to increase its global share of disc parts and other brake parts from 8% (2012) to 10% (2015), and is actively looking to establish facilities abroad.
  • North America: Owns a machine processing plant in Kentucky, and a casting/processing plant in Lerma, Mexico. The Mexican plant came on stream in September 2014, and raised production capacity to 7,500 tons monthly.
  • Asia: The company has one plant in each of China, Korea, India, Indonesia, and Thailand. The casting line at the Thai plant was upgraded in 2013, doubling monthly production to 5,000 tons. Kiriu purchased 18% of Fujiwa Machinery Industry (Hubei) Co., Ltd., which was set up as a joint venture between Sumitomo Corporation and Lioho Machine Works, Ltd. in China. The company has been producing brake discs and drums for Chinese makers since 2012.

Daihatsu Metal

• Group: A subsidiary of Daihatsu group.
• Business: A cast metal maker and processor. Produces disc rotors and brake drums.
• Customers: Supplies for Daihatsu, as well as for models supplied by Daihatsu to Toyota on an OEM basis.

Yoshiwa Kogyo

• Group: A Mazda group company.
• Business: A cast metal maker and processor, mainly produces disc rotors.
• Customers: Mazda.

Continental Automotive

• Group: A joint venture between Continental AG and Nisshinbo Holdings, established in 2000 as Continental Teves.
• Business: Does not produce pads, but does develop and produce full brake systems. Is particularly strong in the area of ABS and ESC systems production.
• Customers: Supplies foundation brakes to Mazda, Honda, and Nissan. Supplies electronic control systems to Mazda, Suzuki, and Daihatsu.

Bosch Corporation

• Group: The Japanese corporate presence of the Robert Bosch group. Inherited brake business from former Bosch Brake Systems.
• Business: Supplies a very small number of brake calipers, and focuses more on miniature, lightweight, and low cost ABS/ESC control systems.
• Customers: Supplies the control systems to Toyota, Nissan, and Honda. Supplies foundation brake components to Toyota only.

Brembo S.p.A.

• Group: An independent disc brake maker headquartered in Italy.
• Business: Produces high quality brakes for high performance cars and brake systems for commercial vehicles.
• Customers: Supplies for some high grade models for Toyota, Nissan, Mitsubishi Motors, and SUBARU.

2) List of Suppliers and their Products (Global Product List)

1) List of Global Facilities

2) Ownership/Investment Structure

1) Disc Brake Parts

Disc Rotor

Disc Caliper

Disc Pad

2) Drum Brake Parts

Brake Drum

Brake Shoe

Brake Lining

• The solidification during the process of casting disc rotors leaves residual stress on the internal sections. Specific know-how is needed to correctly apply heat treatment in order to balance the rotor and release the residual stress to prevent cracking and fracturing. Due to this the lineup of companies differs from those that produce calipers.
• Japanese disc rotor makes are Aisin Takoka, Kiriu, Yoshiwa Kogyo, Asama Giken, Takeda Chuzo, and Daihatsu Metal. Brembo supplies only for high end sports models in the U.S. and Europe. 99% of models produces in Japan are supplied by domestic makers.
• No single company holds over a 50% share of this segment in the Japanese market, but the top three companies have a combined share of about 80%. These are, in order, Aisin Takaoka, Kiriu, and Yoshiwa Kogyo.
• Supply in this segment is largely conducted along "Keiretsu", as we can see below from the breakdown of suppliers for each OEM.
  • Toyota group is 95% covered by Aisin Takaoka.
  • Nissan is completely supplied by Sumitomo Corporation group member Kiriu (formerly part of Nissan group), excluding some high end sports models and models supplied by Nissan on an OEM basis.
  • Honda is basically 100% covered by Asama Giken.
  • Others: Maza is supplied by Yoshiwa Kogyo, and Daihatsu by Daihatsu Metal with a near 100% coverage rate. Kiriu supplies 80% of Suzuki models, with the rest coming from Aisin Takaoka.
• Breakdown by supplier:
  • Aisin Takaoka: Supplies Toyota with rotors through ADVICS as a member of Toyota group. Covers 80-90% of Toyota models. Supplies other OEMs, but apart from Suzuki share is very low. Is the top Japanese rotor supplier in terms of production numbers.
  • Kiriu: A former Nissan group member that still has a near 100% coverage rate for Nissan models. Supplies all Japanese makers except Daihatsu, and holds the top share for Suzuki and Subaru. Is second in terms of number of rotors produced.
  • Yoshiwa Kogyo: Holds a near 100% share of Mazda’s rotor supply, and also covers the Mazda Bongo models supplied on an OEM basis to Nissan. Is only about one third of the total size of Kiriu in terms of rotor supply, but is ranked third in the segment.

• The major Japanese suppliers in this segment are ADVICS, Hitachi AMS, Akebono Brake, and Nissin Kogyo. Overseas-based suppliers are Continental Automotive, Bosch, and high-end sports car exclusive supplier Brembo. Japanese suppliers cover 90% of domestically produced models.
• Looking at the rankings in 2016 we see ADVICS in top position, followed by Hitachi AMS and Akebono Brake. These three compose 80% of the market. Under them with small shares are Continental Automotive, Nissin Kogyo, ZF TRW, Brembo, and Bosch Mando.
• Below is a breakdown of suppliers by major OEM:
  • Toyota: Toyota group is 80% supplied by ADVICS, 15% by Hitachi AMS, and the remaining 5% comes from Akebono Brake.
  • Nissan: Akebono Brake supplies for 60% of Nissan’s models, Hitachi AMS covers 35%, and Continental Automotive a mere 2%. In terms of number of models supplied Akebono and Hitachi AMS are very close, but those models supplied by Akebono are produced in much larger quantities, explaining their total segment share gap.
  • Honda: 65% of models are supplied by Nissin Kogyo, with ADVICS, Continental Automotive, and ZF TRW each covering about 10%. Akebono Brake follows with around 5%.
• Below is a breakdown by supplier:
  • Akebono Brake: Japan’s top supplier of foundation brakes, thanks to its business with Toyota group and Honda. However, in the segment of calipers it falls behind ADVICS and Hitachi AMS. Important customers are Nissan and Mitsubishi Motors.
  • ADVICS: A major player in the area of foundation brakes and brake control systems. As a member of Toyota group it covers, including supply from subsidiary Hosei Brake, about 70% of Toyota’s models. Thanks to the high production volume of some Toyota models, ADVICS is able to keep overall top brake supplier Akebono Brake down in the caliper segment. It supplies all major Japanese OEMs, but if we exclude Toyota it doesn’t hold a high position among any of them.
  • Hitachi AMS: Also a major supplier of foundation brakes and brake control systems, but only deals with calipers in the foundation brake segment. Was historically strong in supplying Nissan, but has recently fallen behind Akebono Brake in the number of models equipped. Holds strong positions with Suzuki, SUBARU, and Nissan.
  • Nissin Kogyo: A supplier of foundation brakes and brake control systems with a 90% coverage rate for Honda models due to being a member of the Honda group. Supplies all OEMs but Toyota and Nissan, but does not have a large share of any of them.

• Disc pads are a core friction component in braking systems, and to obtain a high level trust in their durability they need to have strong braking ability and drag inhibition features. Many of the major suppliers of disc brake calipers also handle disc pads.
• Major Japanese pad suppliers are ADVICS, Nisshinbo Brake, Akebono Brake, Hitachi Chemical, and Japan Brake. Foreign based ones include Nisshinbo Brake subsidiary TMD Friction, Honeywell International, and high-end sports car exclusive supplier Brembo. 95% of the Japanese market is occupied by domestic suppliers.
• As of 2016 the top four companies, comprising 90% of the total, in this segment were: ADVICS, Nisshinbo Brake, Akebono Brake, and Hitachi Chemical.
• ADVICS holds the top position among disc pad suppliers, thanks largely to the fact that they are the main supplier for the Toyota group. However, Nisshinbo Brake and Akebono Brake, who both supply multiple companies, are gaining ground. These three companies make up around 80% of the segment.
• Below is a breakdown of suppliers by major OEM:
  • Toyota: ADVICS holds an 80% share, followed by Nisshinbo Brake with 15%. ADVICS is an Aisin group member and related to Toyota, which explains its top supply volume and number of models equipped.
  • Nissan: Hitachi Chemical supplies just over 50%, while Akebono Brake does around 40%. Nisshinbo Brake’s wholly owned subsidiary TMD supplies the remaining 10%.
  • Honda: Nisshinbo Brake is top with a 45% share, Hitachi Chemical’s wholly owned subsidiary Japan Brake is next with 20%, and Akebono Brake and ADVICS each have around 10%.
  • Other: Nisshinbo Brake is the top supplier for Suzuki and Subaru, Japan Brake is top for Mazda, Akebono Brake for Mitsubishi Motors, and Hitachi Chemical for Daihatsu.
• Below is a breakdown by supplier:
  • ADVICS: The top pad supplier for Toyota by both number of equipped models and number of products shipped. It does not hold the top ranking for supply with any other OEMs, but on an aggregate basis is the top disc pad supplier in Japan.
  • Nisshinbo Brake: A supplier with strengths in friction materials like disc pads and drum brake linings. Together with wholly owned subsidiary TMD friction supplies all major OEMs in Japan, and has the top share with Honda, Suzuki, and Subaru.
  • Akebono Brake: The top supplier of foundation brakes, but lags behind ADVICS and Nisshinbo Brake in the disc pad segment. Supplies all Japanese OEMs with disc pads, holding the top share for Mitsubishi Motors and Daihatsu and a strong position with Nissan.
  • Hitachi Chemical: A member of Hitachi group and historically a strong partner of Nissan. Production of disc pads in Japan is handled by its subsidiary Japan Brake. Has a small share of the supply to Toyota, Daihatsu, and Subaru, and is relatively far behind the top three companies in the segment.
  • Japan Brake: Supplies mostly Mazda, Honda, and Suzuki. Is a rival of Nisshinbo Brake in the supply to Mazda, but does not hold a high ranking for any other companies.