Analysis Report: Power Steering (Japanese Market)

  Among the key vehicle operations of “go, turn, and stop”, the steering mechanism is an important component that influences steering performance. With the popularization of the automobile, manufacturers over time have added more advanced systems such as air conditioning and automatic transmissions. Similar to these systems, power steering is an enhanced version of the basic system that helps drivers to steer a vehicle more easily and comfortably by augmenting steering effort of the steering wheel. In recent years, steering system architectures are evolving to a high level of functionality with system redundancy (to ensure fail-safe operation) and are becoming one of the critical functional components in the CASE (Connected, Autonomous, Shared, and Electric) era.

  Initially power steering was offered as a high-end optional equipment feature available only on some models in the luxury car segment. But power steering now comes equipped on most vehicles as standard equipment to avoid those issues with heavy handling that are common in vehicles with an FWD layout. Today most passenger vehicles in Japan, including mini vehicles and commercial vehicles, are equipped with power steering as standard equipment.

  In the evolution of power steering technology, the early systems were commonly hydraulic assisted ones with the power of the engine used to drive a hydraulic pump. However, as described below, the adoption of electric power steering (EPS) systems is growing rapidly to improve fuel economy because with EPS it is possible to eliminate the hydraulic pump and associated engine load. In fact, most of the models in the current Japanese market are equipped with EPS systems rather than hydraulic systems. In addition, electric power steering technology has continued to evolve, with the world’s first steer-by-wire systems (no mechanical connection between the steering wheels and the wheels) already in production and on the market. Going forward, the product will need to evolve further in parallel to keep pace with the improved functionality of autonomous driving systems. Although the European market is taking the lead, not only the conventional front wheels, but also electric steering systems applied to the rear-wheels have also been commercialized. Such systems not only allow smooth travel on narrow roads, but with the electrification of rear-wheel steering systems, further evolution of autonomous unmanned parking functions in limited parking spaces can be expected.

  This report mainly covers the models produced for the Japanese market by 8 Japanese OEMs , excluding commercial vehicles. As of December 2020, the impact of the spread of the new coronavirus (COVID-19) has not yet ended in Japan and other countries around the world; the impact on individual suppliers and trends are transient and undetermined and will not be discussed unless otherwise noted.

Background:

  In the Japanese market, which is the subject of this report, the proportion of mini and compact vehicles is high; because their engine output is low compared to mid- and large-sized passenger cars, the installation of hydraulic assist which puts a load on the engine had been put off in the past. However, electric power steering (EPS) technology is being adopted even for mini vehicles because, by electrifying the hydraulic mechanism, the fluid piping layout can be eliminated and steering assist performed by means of a small electric motor. Also, since the Kyoto Protocol entered into force in 2005, electric power steering has been adopted alongside components such as CVT and idling stop mechanisms that greatly improve fuel economy and reduce CO2 emissions, and the proliferation of their adoption on mid- to large-sized vehicles has accelerated.

  As a result, almost all vehicle models in the Japanese market are equipped with power steering. With the exception of some commercial vehicles and a number of luxury and sports models where handling performance is important and the engines more powerful, most models are redesigned with electric power steering when it is time for a major model change. In 2017, EPS was adopted on approximately 94% of all mini cars and registered vehicles (engine displacement above 660cc), excluding commercial vehicles, in Japan (based on 2018 MarkLines data).

Recent technology trends:

  In 2020, global automobile production was impacted by the spread of the new coronavirus (COVID-19), and the Japanese market as well as many Japanese automobile manufacturers and suppliers suffered from reduced production, sales, and profits. From the third quarter, an increasing number of companies showed signs of recovery, and corporate reforms, capital investments, and the introduction of new models and technologies continued throughout the year. In the power steering business, the following technology trends have been underway for the past few years.

  In dealing with these technical issues, some companies are consolidating capital, technology, and human resources through business retrenchment and corporate integration. In the area of power steering, business integration is proceeding between Hitachi, Ltd. and Honda Motor Co., Ltd.; a new company, Hitachi Astemo, Ltd., will be launched in January 2021, integrating Hitachi Automotive Systems, Ltd. and Showa Corporation. For more information on this, see Section III. -Overview of major power steering suppliers.

1. Electromechanical integration

  Electric power steering requires an electric motor and control equipment (ECU and motor driver) as well as a steering gearbox in the mechanical linkage. These system components have been developed as separate components, but the current trend involves increasingly greater integration of ECUs and motors into the steering mechanism (electric power packs). As a result, the harnesses connecting the components can be eliminated to reduce weight and yield greater cost savings.

2. ADAS / autonomous driving support

  In recent years, advanced driver-assistance systems (ADAS) such as lane departure warning (LDW) and lane keeping assist (LKA) and the steering operation function are closely integrated (to assist the steering operation and suppress reverse throttle error). The electrification of the power steering system results in an indispensable device in terms of redundancy to ensure system functionality. Furthermore, OEMs are focusing on the research and development of autonomous driving systems, which will necessitate further improvements to the functionality and performance of electric steering systems in the future.

  One example of advanced steering development that attracted significant attention as an element of next generation autonomous driving technology is the steer-by-wire system made by KYB, which was adopted for the 2014 V37 Nissan Skyline hybrid engine model (VQ37VHR), the world’s first production model to use this technology. This same model attracted industry attention again with the adoption of the ProPILOT 2.0, a more advanced Level 2 autonomous driver-assistance system, when the model underwent a ‘big minor change’ prior to new Skyline being released in September 2019. The steer-by-wire electric power steering system, which was considered to be an upfront investment, was well-received by the market and greatly contributed to the success of Nissan’s ProPILOT 2.0 technology.
  JTEKT, the largest supplier of EPS, has also successfully received orders from several automakers for steer-by-wire electric power steering systems. From 2021 onwards, the company expects to offer steer-by-wire EPS systems for vehicles with near Level 3 autonomous driving capability.

3. Functional safety

 With the rapid advance in the functionality and complexity of the electrical and electronic components used in autonomous driving technologies, it is becoming increasingly important that system failures or malfunctions be prevented to ensure the safe operation of vehicles. To achieve this, the concept of functional safety was introduced to the automotive industry with the parent standard IEC 61508. ISO 26262 is an adaptation of the international IEC 61508 functional safety standard for the automotive industry, entitled “Road vehicles – Functional safety”, which was adopted in 2011. With regards to EPS, failure modes such as steering lock have been classified as ASIL-D (Automotive Safety Integrity Level D), which refers to the highest classification of initial hazard (injury risk) defined within ISO 26262 requiring that automakers ensure the highest levels of quality in terms of functional safety and redundant design. As one example, brushless electric motors are being increasingly adopted because they are advantageous in terms of redundant design (to ensure safety). This is because, a redundant design is not practical in the case of a conventional brushed motor due to its structure (it would be necessary to have a structure in which two commutators are provided and brushes are arranged on both sides). In the case of a brushless type, multiple rotation angle sensors are needed, but it is for this reason that a redundant design can be made relatively easily.

4. Electric rear-wheel steering

  Japanese suppliers have not yet announced their development plans, but European companies such as ZF and Bosch / Schaeffler are proceeding with the development of wide-angle electric rear-wheel steering systems that will make it easier to steer the car even on narrow roads and parking spaces. Finally, a system that envisions autonomous driving with steer-by-wire has been seen. In 2021, vehicle models equipped with a new ZF system will be launched in the market.

  In this way, power steering systems have generally become standard equipment but system products are even now continuing to evolve.

Types of power steering systems

The following section details the different types of power steering systems.

Hydraulic Power Steering

1. Hydraulic Power Steering (HPS): This is the most conventional type, which utilizes steering fluid pressure from a hydraulic pump that is driven by the vehicle’s engine. An HPS can also be electronically controlled.
2. Electro-hydraulic Power Steering (EHPS): This is a system that uses the same hydraulic assist technology as standard systems, but the hydraulic pressure comes from a pump driven by an electric motor instead of a drive belt at the engine. The adoption of EHPS is limited to luxury cars and sports models.

Electric Power Steering (EPS):

  Electric power steering systems are divided into three categories depending on the position of the electric motor.

1. Column assist type (C-EPS): The motor is connected to the steering column inside the passenger compartment and powers the column shaft.
   

   Pros:	Because the motor is in the vehicle interior there is more room in the engine compartment, which makes it particularly well suited for minicars and subcompacts. It is also advantageous in terms of being waterproof.
   Cons:	It is hard to increase the size and power of the motor. Operating noise may be an issue due to its location in the vehicle interior. Steering feel can be a bit tricky.

2. Rack assist type (R-EPS): The motor is connected to the rack housing in the engine compartment and directly powers the rack. There are three sub-types: RD-EPS where the motor is positioned above the rack gear, RC-EPS where the motor is at an angle to the rack gear, and RP-EPS where the motor is parallel to the rack gear.
   

   Pros:	Driving feels is good because the rack is powered directly. Noise is reduced because the motor is in the engine compartment. It is easy to increase motor power for use in large vehicles or sports models.
   Cons:	High cost, layout restrictions, water-proofing concerns.

3. Pinion assist type (P-EPS/DP-EPS): In the P-EPS system, the motor (power assist unit) is positioned in the engine room and provides assist force to the shaft extending from the steering wheel. In the DP-EPS system, the structure adopted features two pinions meshing with the rack bar at separate locations, which improves the ease of vehicle mounting and power output.
   

   Pros:	Handling feel is better compared to column assist type (C-EPS). Noise is reduced because the motor is in the engine compartment. It is easy to increase motor power for use in large vehicles or sports models.
   Cons:	Layout restrictions, water-proofing concerns. Rack-and-pinion area load tends to be greater than rack assist type (R-EPS).

  Based on these characteristics, design considerations may vary by OEM. For example, in looking at the FR rear-wheel drive layout of the luxury cars and sports models of Toyota and Nissan, one can see that Toyota is using the R-EPS made by JTECT, whereas Nissan is using the HPS or EHPS made by Hitachi Automotive Systems. Toyota’s decision to discontinue the use of hydraulic systems is in contrast to Nissan’s continued use of them, may indicate differences that exist at these companies with regards to the feel of handling and steering.

In the below Section IV list of equipment by model type, HPS, EHPS, and EPS systems have been detailed by sub-category wherever possible. Power steering system components other than the steering mechanisms themselves include: pumps in hydraulic and electro-hydraulic types, motors in electric and electro-hydraulic types, and ECUs for all power steering system types except mechanical control types. Since nearly all of these system components are specified by the power steering system supplier, they will not be described in the equipment description of each model, but will be described in the main power steering system supplier trends in Section III.

  As of January 2021, there are 6 major power steering system suppliers in the Japanese market for passenger cars and small commercial vehicles. Four of these are the Japanese suppliers: JTEKT, NSK Steering Systems, Hitachi Astemo (integration of Hitachi Automotive Systems and Showa), and KYB. In addition to these 4 companies, there are 2 overseas suppliers that provide systems for some Japanese models: German/U.S.-based ZF Japan (ZF TRW Automotive) and Germany-based Robert Bosch Automotive Steering.

  Of these 6 companies, only 3 supply hydraulic power steering systems to OEMs in the Japanese market: JTEKT, Hitachi Astemo (Hitachi Automotive Systems), and KYB.

  The hydraulic pumps for Hydraulic Power Steering (HPS) and Electro-hydraulic Power Steering (EHPS) systems are generally manufactured in-house by power steering system suppliers. On the one hand, there are only 3 suppliers that manufacture electric motors in-house: Hitachi Astemo (Hitachi Automotive Systems), ZF Japan (ZF TRW Automotive), and Robert Bosch Automotive Steering. Basically, the electric power steering systems of these 3 companies are equipped with electric motors manufactured in-house. JTEKT, NSK Steering Systems, Showa, and KYB do not manufacture electric motors in-house, but source and incorporate electric motors from suppliers such as Denso (formerly ASMO), Mitsubishi Electric, Nidec and Mitsuba, according to the specifications of automakers, delivering their products to the OEMs as complete power steering assemblies.

  In recent years there is a trend to integrate the ECU (controller, motor driver) with added logic design along with the electric motor with the electromechanical components in the electric power steering system. JTEKT, NSK Steering Systems and Showa do not make the ECUs in-house and depending on the vehicle OEM will procure the units from Denso Corporation / DensoTen Limited, Mitsubishi Electric Corporation, Nidec Elesys Corporation / Nidec Mobility Corporation (formerly Omron Automotive Electronics), Furukawa Electric Co., Ltd., Continental, or others.

  As for the recent business trends of power steering suppliers in the Japanese market, first of all, Hitachi Astemo, a new company, will be created in January 2021 through the merger of Hitachi Automotive Systems and Showa Corporation, two competing suppliers. Secondly, KYB has decided to discontinue domestic production of electric power steering systems (EPS) in Japan from 2020 onwards and to concentrate on production in China in order to improve profitability following some improper matters in its non-automotive parts sector. All of these details will be described in detail in the overview of each supplier. There have been no major developments at other suppliers, except for development activities.

  Supplier market share based on Japanese market production volumes (for vehicles manufactured domestically in Japan in 2017, excluding commercial vehicles; based on MarkLines data as of 2018) are as follows.

The percentage in parentheses is the electrification rate (EPS + EHPS) out of the total number of systems manufactured:

1. JTEKT - 58% (92%)
2. NSK Steering Systems - 25% (100%)
3. Hitachi Automotive Systems - 10% (87%)
4. ZF · Japan / ZF TRW Automotive - 3% (100%)
5. Showa - 2% (100%)
6. KYB - 2% (96%)
7. Robert Bosch Automotive Steering - slight (100%)

JTEKT

Overview:

JTEKT Corporation (JTEKT) is the top supplier of power steering systems with a Japan market share of 58%, excluding commercial vehicles.

• JTEKT is a Toyotakeiretsu supplier established in January 2006 by the merger of Koyo Seiko and Toyota Koki. The company also has a capital and business tie-up with former Nissankeiretsu steering column supplier Fuji Kiko Co., Ltd. and now supplies all Japanese OEMs including Toyota. As a result, the company has the top share of the Japanese domestic power steering system market with a 58% share (according to MarkLines 2018 survey), and it also has the top global share.
• Koyo Seiko, in 1988, was the first company in the world to begin mass production of electric power steering systems, which today are featured as standard equipment. At the time, the systems were installed on the Suzuki Cervo CG72V and CH72V models.
• JTEKT produces and sells HPS, EHPS, and EPS systems, but has recently shifted its product lineup towards EPS, with EPS accounting for over 80% of the power steering systems it manufactured in 2016. For mini and subcompact cars the company supplies C-EPS and P-EPS/DP-EPS systems; for medium to large size passenger vehicles it supplies RP-EPS and RD-EPS systems. It also partners with other Toyota group companies such as Denso to create power pack systems (combining the motor/solenoid with an ECU/MCU actuator), allowing the company to stay ahead of its rivals in this segment. In 2019, J-QuAD Dynamics, Co. Ltd., a control software development company for electromechanical integration, was established, and JTEKT will expand its in-house electric power steering software development organization which is expected to further improve its development capabilities. For details, refer to “Business Trends” and “Development trends”.

Business Trends

  Toyota Group suppliers cooperating to push ahead on electromechanical integration (mounting ECUs / MCUs on actuators such as motors and solenoids) formed a new joint venture in April 2019, J-QuAD Dynamics Co., Ltd. (Tokyo Chiyoda Ward, JPY 50 million capital stock), which will be responsible for developing autonomous driving control software. The four companies participating in the joint venture, JTEKT (investment ratio 5%), Denso Corporation (65%), Aisin Seiki Co., Ltd. (25%) and Advics Co., Ltd. (5%), will bring together their know-how and technology related to autonomous driving and vehicle mobility.

  The purpose of the joint venture is to supply integrated electromechanical products incorporating ECUs and functional parts to each of the partners so that they will be able to deliver them to OEMS other than Toyota Group companies. As for JTEKT, by bundling with autonomous driving systems, it expects to develop new sales channels to vehicle OEMs which have not yet entered the electric power steering market.

• As a new business related to electric power steering, the company began production of a newly developed lithium-ion capacitor (LIC) in 2019. In addition to being used as an auxiliary power source for electric power steering, it is also being considered for use in other industries such as construction equipment.
• Mainly for its customers in the North America and China markets, the company increasing its production of the “downstream-assist-type EPS", namely R-EPS and P-EPS. In the past, many FF vehicles adopted column assist type EPS (C-EPS). But, downstream-assist-type EPS has advantages such as increased output, smoother steering feel, and less deterioration in steering feel over time due to equipment aging, so the company is focusing on downstream-assist-type EPS to satisfy customer demand.
• Typically hydraulic systems are replaced with EPS systems with the introduction of a full model change. However, in some cases the changeover to EPS is implemented as a minor refresh such as when Toyota updated its light-duty commercial vehicles, the Probox Van and Succeed Van. The changeover was updated as a minor change for these models because commercial vehicles generally have a longer model life cycle and Toyota most likely did not want to wait for the next full model change.
• JTEKT began production of a new RP-EPS system for the Lexus LC luxury coupe at its Hanazono Plant in Aichi in December 2016, in preparation for the model’s launch in March 2017.
• Going forward, it is expected that there will be a shift from the conventional RD-EPS system to the newer RP-EPS systems across an increasing number of models.
• Specifically, current RD-EPS systems were mainly only installed on FR models only, primarily for models in the D-Segment and above, but this is likely to expand to FF models as well. Furthermore, these systems are likely to be installed on light trucks that currently use mainly hydraulic systems.
• JTEKT expects to see growth in the Japanese, U.S., and ASEAN markets.
• In light of these activities, JTEKT has set a global market share target of 17.2% by 2020, with plans to make RD-EPS a key new product to achieve growth at JTEKT.
• To reach the above target, JTEKT invested JPY 3.5 billion into its Hanazono Plant in November 2017 to bring a second production line on stream. This increase in capacity will allow the company to produce a maximum of 60,000 RP-EPS units per month.
• RD-EPS systems are designed with the motor positioned on the same axle as the rack, but in RP-EPS systems the motor and controller are positioned parallel to the rack. Torque generated by the EPS motor in response to the steering torque is transmitted from the belt to the ball screw, and converted into the movement of the rack.
• In April 2015, JTEKT reached the milestone of 100 million EPS units produced. Currently it supplies over 15 automakers with these systems, and has a global EPS market share of over 30%.

Development trends:

• In May 2020, to increase ECU development resources for automotive components in North America, Canadian JTEKT subsidiary Koyo Canada announced the acquisition of Halifax R&D, an ECU development facility owned by KSR International. Halifax R&D has a track record of developing H-EPS MCUs (Motor Control Units) for the US and European markets, and is also developing ECUs for high voltage applications. In the future, the company will promote the development of steer-by-wire and high-output systems to enhance the supply system for steering products to European and US OEMs.
• In January 2020, the company announced that it was developing electric power steering systems for medium- and heavy-duty commercial vehicles. The motor and ECU will be mounted close to the tire, and the steering will be performed using a lithium-ion capacitor developed by the company as an auxiliary power source.
• In November 2019, JTEKT announced that it had received orders for steer-by-wire electric power steering from a number of vehicle OEMs, and it is scheduled to be installed in luxury cars released after 2021. In normal operations, the steering in a "steer-by-wire" system is performed by an electric coupling, however, in an emergency, the system features a fail-safe function in which the steering wheel and the front axle are directly connected mechanically with a clutch function. In addition, it is predicted that it will be possible to equip this system with an autonomous steering function equivalent to Level-3; it is possible that this could lay the groundwork for a steering system that completely controls vehicle and steering behavior independently which could be applied to autonomous driving by 2025.
•   In addition, it is expected that this steer-by-wire electric power steering will be equipped with an in-house developed and manufactured high-heat resistant lithium-ion capacitor which will function for a certain time as a power supply to the ECU and electric motor even if electric power supply from the vehicle is cut-off due to some fault.
• In September 2019, to strengthen development of electric power steering electronics related components, the company added a software development base to its existing Hanazono Plant Technical Development Center (Okazaki City, Aichi Prefecture), and even at its Higashi Kariya Office (Kariya City, Aichi Prefecture) it began software development. There is a target to increase the number of software developers; in April 2019, it reorganized its software development organization and established a department to develop EPS embedded software based on Model Based Development (MBD).
    To meet the needs for new systems such as autonomous driving, steer-by-wire, and integrated electromechanical components (MCU), the company is building an integrated development system for the enhancement of the required technology level for functional safety design, redundancy design, and cyber security: everything from system software requirements to single unit design and evaluation and system evaluation.

  As discussed above in the Business Trends section, in April 2019, together with the Toyota Group's Denso, Aisin Seiki and Advics, a new joint venture called J-QuAD Dynamics was established, bringing together the specialties of the four companies to develop control software for autonomous vehicles.

• JTEKT: Electric power steering technology
• Advics: brake technology
• Denso: Control electronics technology, sensor technology
• Aisin Seiki: Transmission control technology

• In May 2019, the company announced that it would develop a high-performance lithium-ion capacitor to be manufactured by the company with the goal of offering it to customers two to three years later. The company will increase the storage capacity and sell the capacitor for series hybrid vehicles, as well as develop a system that combines the capacitor with wireless charging.
• In January 2019, the company announced that it had developed an electric motor that does not use the rare earth metals neodymium and dysprosium. Eliminating the use of rare minerals that are unevenly distributed can enhance the stability of material supplies and contribute to cost reduction. With bond magnets embedded in a U-shaped groove in the rotor, this is an interior permanent magnet (IPM) type motor. The company has already begun production of the motor for actuators in in-house manufactured automotive components, and aims to increase the motor’s heat resistance to use in electric power steering and electric oil pumps.
• In November 2017, the company established JTEKT IT Development Center Akita, an automotive components software development center. JTEKT will use the center to develop more advanced software for automotive products such as electric power steering systems.
• In July 2016, the first full-scale proving ground at an overseas site was established at JTEKT Europe S.A.S., the company’s European regional headquarters in France. The company will be able to evaluate and analyze steering systems, and will promote new technologies and products to expand sales activities to automakers such as Daimler and BMW, which have development facilities in Europe.

Manufacturing site trends:

• In October 2019, the company opened JTEKT Automotive Morocco S.A.S (JAMO), its first production facility in Morocco. Annual production of 300,000 electric power steering units will commence in October 2020. It will be a new supply base for European OEMs, focusing mainly on the Moroccan and North African markets.
  Fuji Autotech Morocco S.A.S. (FAMO), a subsidiary of Fuji Kiko Co., Ltd., which itself is a wholly-owned subsidiary of JTEKT, is located at the same production site. FAMO started production of steering columns in August 2019.

• In June 2017, JTEKT acquired 25.23% of the shares of its Indian joint venture SONA Koyo Steering Systems Limited (SKSSL) established with its largest shareholder SONA Autocomp Holding Limited (SAHL). Combining the additional 25.23% with the 45.22% it previously held, JTEKT now owns 70.45% share equity in SKSSL. The name of the company was subsequently changed JTEKT India Limited.
• In September 2015, the company established a manufacturing site in San Luis Potosi, Mexico for the production of electric power steering (EPS) with an annual production capacity of 900,000 units for automakers in Mexico and the United States. In July 2018, the company announced that it had placed a hold on the implementation of its expansion plan due to the uncertainty associated with renegotiation of the NAFTA agreement.

System component suppliers:

• ECU/Motor: Those supplied to Toyota, Daihatsu, and Subaru are mostly from Denso, while those supplied to Nissan and Mazda are mostly from Mitsubishi Electric.
• Most hydraulic pumps are manufactured in-house, while some companies such as KYB outsource these parts

NSK Steering Systems / NSK Ltd.

Overview, business trends, and manufacturing

• NSK Steering Systems Co., Ltd. (NSK Steering Systems) was formed as a result of a spin-off the power steering division of bearing supplier giant NSK Ltd. (NSK) in 2001. The transition of all steering related businesses from NSK to NSK Steering Systems was completed in 2002, forming the foundation of this new steering systems supplier.
• In the Japanese power steering market (production in 2017), excluding commercial vehicles, NSK Steering Systems has the second largest share at 25% (MarkLine's 2018 survey), but this is less than half the 58% share held by JTEKT, the leader in the market. Considering only electric power steering, NSK Steering Systems is third largest in the world (as of March 31, 2018, according to NSK Ltd.). This is taking into account only the production of electric power steering; the electric motors and ECUs incorporated into the units are not manufactured in-house.
• Regarding ECUs mentioned above, in September 2010, NSK and Toshiba Corporation (Toshiba) established a joint venture, ADTech Co., Ltd. (ADTech), a research and development company for ECUs for electric power steering. In 2014, production of ECUs for European customers began at Toshiba's production facilities in China. In April 2016, Toshiba's collaboration was terminated and ADTech became a wholly owned subsidiary of NSK. From 2017, NSK Steering Systems began development of all electrical and electronic system products.
• The company has nine production plants in six countries: Japan (Soja Plant, Akagi Plant), the U.S., Poland, India (Bawal, Gujarat), Thailand, and China (Dongguan, Hangzhou). In November 2018, a dedicated electric power steering plant was established in Ahmedabad, Gujarat, India, the second plant of Rane NSK Steering Systems Ltd., a joint venture with the Rane Group of India. The initial annual production capacity is about 250,000 units and is planned to increase to 600,000 units per year over the next two years.
• The company only produces EPS systems. It supplies C-EPS systems for mini, subcompact and mid-size vehicles. It also supplies R-EPS and P-EPS systems for large passenger cars and sports models. However, most of its production expertise has been for C-EPS and P-EPS.
• With the celebration of its 100th anniversary in November 2016, NSK Steering Systems formulated its NSK Vision 2026 strategic plan that focuses on the next-generation products and technologies that the company plans to develop over the coming decade such as autonomous driving technology and electrification. While maintaining its competitiveness in its core businesses such as electric power steering and bearings, next-generation technologies under development include field testing that the company is currently conducting on in-wheel motors that are incorporated into the hub of a wheel to drive it directly, as well as plans to accumulate expertise regarding electrification.

Development trends:

• In March 2019, the company announced that it is developing steer-by-wire (SBW) in anticipation of the spread of autonomous driving. At a briefing on next-generation software for electric power steering, a demonstration car equipped with steer-by-wire was unveiled for the first time.
• In March 2019, NSK Steering Systems announced that it would standardize the ECU embedded software for electric power steering applications. The company is developing next-generation control software that can be used with any vehicle, and aims to introduce it in the mid-2020s. Considering the increasing burden of software development for connected and autonomous driving as well as for heavy use in EPS, the company aims to decrease costs and workload by standardizing the embedded software.
• In March 2017, with the aim of practical application in 2020, the company has developed a new manufacturing method that can reduce the weight of its electric power steering systems. This method makes it possible to replace conventional welded parts using cold molding technology to create integral molded parts with a hollow shaft. It can also reduce the weight of conventional parts that transmit torque by approximately 15% and the entire system weight by approximately 2.5%, and it has the advantages of reducing manufacturing costs by simplifying the manufacturing process as well as realizing an improvement in part reliability.
• In January 2016, the company announced that it had developed the world’s lightest C-EPS system. By miniaturizing the torque sensors and deceleration gears the EPS unit was made 13% lighter than conventional designs. In addition, the torque sensors were upgraded to ensure uninterrupted operation even under low power conditions, and a monitoring function was added, increasing the safety of the new system. The new C-EPS system can be adopted for mini vehicles and B-segment subcompacts, and is a next-generation eco-friendly product for which mass market volume production began in 2017.
• In January 2016, the company announced that it had developed an electric power steering (EPS) system equipped with Active On Centering Control to that improves driving pleasure by making it possible for the steering wheel to smoothly return to the on-center position. The new control system reduces driver’s stress when operating a vehicle by returning the steering wheel to the on-center position, optimizing steering wheel return and correcting the car’s trajectory. If equipped with steering angle sensors, the system does not require specialized components and will work only if part an EPS-controlled system. The company planned to commercialize the product sometime after 2017, and will continue to work to lower costs and improve functionality.

Suppliers of power steering system components

• ECU: NSK Steering Systems does not produce ECUs in-house so, based upon the sourcing direction of its OEM customers, it works with electric and electrical component suppliers such as Denso, Hitachi AMS, Nidec Elesys, NIDEC MOBILITY (Former OMRON Automotive Electronics) and Mitsubishi Electric. Moreover, there are out-sourced products which are manufactured under the NSK brand.
• Motor: NSK uses electric and electrical component suppliers such as Nidec, Mitsubishi Electric, Hitachi AMS, and Mitsuba.

Hitachi Astemo

Overview

• Hitachi Astemo, Ltd. will be formally created in January 2021 through the merger of four parts suppliers: Hitachi Automotive Systems, Ltd. (Hitachi AMS), a subsidiary of Hitachi, Ltd. and Keihin Corporation, Showa Corporation, and Nissin Kogyo Co., Ltd., affiliates of Honda Motor Co., Ltd. (Honda).
• Honda closed its takeover bid for the three affiliated companies on October 15, 2020, to make them wholly-owned subsidiaries. With Hitachi AMS becoming the ultimate surviving company (headquartered in Hitachinaka City, Ibaraki Prefecture), it and the three Honda subsidiaries will be merged into the new company, Hitachi Astemo, with Hitachi, Ltd. holding 66.6% and Honda 33.4% of the shares.
• The goal is to become one of the global top three mega-suppliers by competing with other mega-suppliers in the areas of powertrain, chassis, and safety systems by concentrating financial, technology, and human resources to beat the competition in advanced technologies such as electrification.
• The company's name Astemo is an acronym for "Advanced Sustainable Technology for Mobility," and it is the company's intention to "provide a safe, comfortable, and sustainable mobility lifestyle through technology that contributes to an advanced and sustainable society. (From the press release)
• The power steering business is owned by two of the four integrated companies, Hitachi AMS and Showa Corporation (Showa), with a combined share of approximately 12% in the Japanese market (according to MarkLines 2018 survey). While Hitachi AMS specializes in hydraulic power steering systems, mainly for Nissan, it has not expanded sales of electric power steering systems except for C-segment models for Subaru. Htachi AMS and Showa business with Honda and Mazda will bring about a complementary effect.

This report was written before the integration of the four companies, and the outline of the post-merger business has not yet been announced. The following is a business overview of Hitachi AMS and Showa before the integration.

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  Hitachi Automotive Systems (Hitachi AMS)

  Overview:

  • The power steering division of the Hitachi Group was formed by the merger of the power steering businesses of Unisia Jecs Corporation and Bosch Brake Systems Co., Ltd. (formerly Jidosha Kiki Co., Ltd.) in 2001, established under the name Unisia JKC Steering Systems. The company was absorbed into Hitachi’s automotive division in 2008, and then spun off as Hitachi Automotive Systems in 2009.
  • Hitachi AMS is the third largest supplier in the Japanese market after NSK Steering Systems, manufacturing 10% of all power steering systems in 2017 (MarkLines 2018 survey).

  Bussiness trends:

  • Hitachi Automotive Systems, Ltd. announced that it would drastically change its business structure effective April 2019. Business responsibilities, which had been previously divided by region, will be shifted to a system in which product divisions and business units (BUs) assume responsibility. The five existing divisions have been changed to four business divisions: Software Division, Powertrain & Safety Systems Division, Chassis Division, and Aftermarket Division. Within these divisions new Bus were established for products such as ADAS (advanced driver assistance systems), brakes, and steering.
  • Hitachi AMS produces the same range of products as market leader JTEKT: HPS, EHPS, and EPS systems. However, over 50% of the power steering systems sold by the company are hydraulic (including EHPS), which is counter to the general trend in the Japanese market where EPS systems are mainstream. The reason for this is that although it supplies HPS systems to automakers such as Nissan and Mitsubishi, it supplies EPS systems to only Subaru. However, because JTEKT and KYB have also started supplying Subaru, the company will likely be challenged to expand its sales of EPS to other automakers.
  • Hitachi AMS also had a steering business for heavy-duty and medium-duty commercial vehicles in Japan and Thailand, but this commercial vehicle steering business was sold to Knorr-Bremse AG, a major German supplier of chassis control equipment for commercial vehicles, in April 2019. Knorr-Bremse aims to gain better access to the Japanese and Southeast Asian markets, while providing driving assistance and autonomous driving systems.
  • The core characteristic of Hitachi AMS’s EHPS systems is that hydraulic pressure is generated by the motor only when steering, resulting in minimal energy loss. The system was co-developed with Nissan, which dubbed it the Electro-Hydraulic power steering system. This new EHPS system is installed on the Nissan Fuga and Cima hybrid vehicle models.

  Development trends

  • An upgraded version of the EyeSight system developed jointly by Subaru and Hitachi AMS, EyeSight Ver.3, is installed on the Subaru Levorg that was released in 2014. This new system includes features that work in unison with the EPS such as active steering assist, reverse automatic braking, and lane departure prevention assist. These features are available as standard equipment on all models, with the exception of the lowest-price versions. Subaru announced that it plans to release new models equipped with an upgraded version of its EyeSight system so that it will be possible realize automated driving on expressways and other motor vehicle-only roads. Although the name has not been officially announced, it will likely be named EyeSight Ver.4.

  Power steering system and component suppliers:

  • ECU: Manufactures in-house and sources from electric and electrical parts suppliers such as Denso.
  • Motor: Manufactures in-house and sources from electric and electrical parts suppliers such as Mitsuba.
  • Hydraulic pump: Manufactures in-house and sources from hydraulic equipment suppliers such as KYB.

•  

  Showa

  Overview, development trends

  • The main products of Showa Corporation (Showa) are chassis components such as shock absorbers and power steering systems for 2- and 4-wheeled vehicles. The company’s EPS business began with the transfer of Honda’s development and manufacturing operations. The first EPS system produced by Showa was a rack assist coaxial-type EPS used on the 1997 model year Accord. Subsequently, the company added pinion assist type EPS to its product lineup, and currently sells both types. Showa used to also manufacture HPS systems, but production on the models on which the HPS systems were installed have been discontinued, so now makes only EPS systems (with the exception of HPS service parts).
  • In the Japanese market, Showa is an electric power steering supplier, but it also produces hydraulic power steering systems for the Chinese and other overseas markets.
  • Looking at the integration with Hitachi AMS from Showa’s perspective, it will be possible to continue to enjoy the electric power steering business of Honda and Mazda, where Hitachi AMS has no presence, as well as to exploit and promote Hitachi AMS’s integrated electromechanical products incorporating electric motors and ECUs.
  • In the Japanese power steering market, Showa is the fifth largest company after ZF TRW Automotive Japan Co., Ltd (formerly TRW Automotive Japan Co., Ltd.), with a market share of about 2% (according to MarkLines 2018 survey). One of the reasons for the current market share is that the company does not produce C-EPS, which is the mainstay for small passenger cars, and despite being a Honda-affiliated company, it has not been able to win business for small cars such as the N-series mini cars and Fit, which are hot sellers for Honda in the new car market in Japan. This may be one of the reasons for the current power steering market share results. Currently, other than the Honda Legend, Showa is delivering DP-EPS for Honda's high-end models as well as for the Mazda Roadster.
  • In May 2019, a steer-by-wire electric power steering system, an example of coordinated steering and suspension control that controls electric power steering and Intelligent Electronic Control Adaptive Suspension (IECAS, an electronically controlled damper), together, was presented at the JSAE Automotive Engineering Exposition 2019 Yokohama.

  Manufacturing site trends

  • Showa has nine production and assembly facilities worldwide: Japan, China (three), Thailand, the U.K., the U.S., Canada, and Mexico.
  • In February 2019, the company announced its intention to double the production capacity of its production bases in China in four to five years, given the increasing demand for power steering in the Chinese market. In addition, the company will increase the number of locally hired engineers and introduce various types of testing equipment at its development center in Guangzhou.

  Power steering system and component suppliers:

  • ECU: Uses products made by Nidec Elesys Corporation and Mitsubishi Electric Corporation (Mitsubishi Electric).
  • Motor: Sources from Mitsuba Corporation and Mitsubishi Electric.

ZF Japan Co., Ltd. / ZF TRW Automotive (Formerly TRW Automotive Japan, Co., Ltd.)

Overview:

• The parent company, ZF Friedrichshafen AG (ZF) of Germany, is a leading global supplier of driveline, chassis and active safety components; power steering is an active safety system product.
• In the Japanese market for power steering, ZF is the fourth largest supplier after Hitachi Automotive Systems, with a share of about 3% in 2017 (MarkLine's 2018 survey). However, it the second largest in the global market.
• ZF Friedrichshafen AG (ZF) completed its acquisition of TRW Automotive Holdings Corp. for USD 11.7 billion in May 2015.
• Initially TRW’s businesses were absorbed into ZF’s newly established Active and Passive Safety Technology division as a wholly-owned subsidiary called ZF TRW Automotive Holdings Corp. headquartered in the U.S. ZF intends to spend the next three to five years on post-merger integration. Following this, ZF TRW unveiled a new EPS system equipped on ZF’s Active Kinematic Control test vehicle in February 2016. The company expects to continue to release next-generation products for autonomous driving systems.
• The joint 50/50 venture between ZF and Bosch, ZF Lenksysteme GmbH, has been sold to Bosch and re-incorporated as Robert Bosch Automotive Steering GmbH.
• After TRW became a wholly-owned subsidiary of ZF, the various affiliates of TRW operating in Japan were consolidated in March 2017. The ZF Tokyo HQ was moved to TRW’s offices in Yokohama where its operations were centralized under the company name ZF Japan. For reference, the current name of TRW’s Japan subsidiary does not include “TRW”, but for the sake of consistency this report uses the name of its U.S. operations ZF TRW.
• In May 2020, ZF completed the acquisition of WABCO Global GmbH, a leading supplier of chassis controls, including brake controls, stability controls, and suspension controls for commercial vehicles, creating ZF's tenth business unit, the Commercial Vehicle Control Systems Division.

Bussiness Trends

• ZF Japan’s strength lies in active and passive safety systems related technologies such as airbags, seat belts, steering systems, driver-assistance systems, brakes, ABS, ESC, and EPS systems. The company its targeting partial automation capability by developing advanced driver-assistance systems.
• Production in Japan started in the 1970’s with steering-related components such as gears and ball joints, which it supplies to Japanese automakers and component suppliers. As of 2017, the company supplies product for only some of Mazda’s models, so its share of the Japanese market, as previously mentioned, is only about 3%.
• Similar to JTEKT and Hitachi Automotive Systems, ZF Japan’s product portfolio includes HPS, EHPS, and EPS systems, but currently its sales power steering systems in Japan is limited to EPS only.
• The EPS types that ZF TRW offers are the column assist type (C-EPS) and the rack assist type (R-EPS). Its R-EPS uses a belt drive and ball nut mechanism to deliver power assist to the rack gears.
• As previously mentioned, although the company supplies product to only Mazda in Japan, globally it supplies product to automakers such as VW/Audi, Ford, and Volvo.
• It started producing EPS systems in 2001, and in 2014 reached a global production milestone of 26 million units.
• The C-EPS systems equipped on the Mazda Demio DJ series (produced in Japan, Mexico, and Thailand) are supplied to Mazda out of its global manufacturing hub at TRW China. The C-EPS equipped on the CX-3 (produced in Japan) is also manufactured by TRW China.

Development trends:

• In October 2020, the second generation of its electric rear-axle steering system, Active Kinematics Control (AKC), was announced. The rear-axle steering angle has been increased from 4.5 degrees to a maximum of 10 degrees, making it easier to steer in narrow roads and parking spaces. In addition, the actuator force has been increased from 8kN to 11kN to support a vehicle weight of up to 3.5 tons. Further, a steer-by-wire system has been adopted in this generation of AKC, making it easier to adapt to automated driving. Regular production of the second-generation AKC for the new Mercedes Benz S-class (W223), a full-size luxury car, will begin in December 2020 in Lebring, Austria, with an annual production capacity of up to one million units.

Manufacturing site trends:

• Recent investments in production facilities include the commencement of the second phase of construction in May 2018 at the 66,667-square-meter electric power steering plant in Zhangjiagang, Jiangsu Province, China. The company expects annual sales of approximately USD 600 million at full capacity.
• ZF TRW is strengthening its activities with regards to proposals to form partnerships, co-develop products, as well as supplementing the production needs for Japanese automotive component suppliers with operations in developing countries. The company is particularly interested in expanding its market presence in Brazil where it has been relatively late to enter compared with China and India. In preparation to respond effectively to meet these objectives, the company is targeting to aggressively increase the scale of its activities by establishing a strong organizational structure in Japan and strengthening its business relationships with Japanese suppliers.
• The company’s EPS manufacturing footprint consists of 5 sites in the following countries: Poland, Spain, Slovakia, China, and Brazil.

KYB (Former Kayaba Kogyo)

Overview:

• The company formally changed its name to KYB on October 1, 2015.
• KYB is the 6th largest supplier of power steering systems in Japan, with a market share of less than 2%. (MarkLine's 2018 survey) However, KYB is an established major supplier of shock absorbers and other hydraulic systems, and its business in the areas of driver-assistance systems and autonomous driving is expected to expand as a result of its expertise in constructing integrated control systems.
• Although independent, Toyota is a major shareholder with 7.69% of KYB shares. However, there is little relationship with Toyota in the power steering business.
• Sales revenue is made up of about 75% for shock absorbers and the remaining less than 30% for power steering systems such as HPS and EPS for 4-wheel applications.

Business trends:

• Although it manufactures both hydraulic type (HPS) and electric type (EPS) power steering systems, it’s situation resembles that of Hitachi AMS where in Japan it is selling more HPS than EPS. That said, however, the company began the in-house production of the ECUs for its EPS systems in 2013, and started supply to supply these to Mazda, Mitsubishi Motors, Subaru, and Nissan.
• The company has HPS production sites in Thailand and Spain as well as in Japan, and supplies to the global market. On the other hand, with the rapid replacement to EPS in the market, the demand for hydraulic pumps for HPS is expected to decrease, and there is an urgent need to expand the development and production of EPS.
• In response to some improper seismic isolation and vibration control equipment issues in its non-automotive division that came to light in 2018, the company has been forced to accelerate the pace of its profit improvement. In the automotive parts division, the company announced a plan to discontinue domestic production of electric power steering (EPS) systems (Gifu North Plant) after 2020. Due to the increasing complexity of the EPS system, the cost of procuring parts in Japan has been rising and the production volume peaked out in 2016, resulting in worsening profitability. As a countermeasure, the company intends to shift its focus to EPS produced by a profitable joint venture in China, Hubei Henglong KYB Automobile Electric Steering System Co., Ltd.
• One of the features of KYB's electric power steering is that the KYB steer-by-wire electric power steering system installed in the hybrid model of the Nissan V37 Skyline launched in February 2014 was the world's first production steer-by-wire system. For Nissan, it was one of the advanced technologies sold under the product name "Direct Adaptive Steering (DAS)". The high-speed in-vehicle communication system “FlexRay” is used to control the steering behavior among the three ECUs performing distributed and cooperative control. By operating the steering angle actuator, the steering angle and the steering feeling can be set arbitrarily, and this mechanism achieves both natural handling and operation without the transfer of unnecessary reaction force and without fatigue. The V37 Skyline is also equipped with a driver assistance system including Active Lane Control (ALC), and it is thought that by brushing up "steer-by-wire", this will become the elemental technology for the next generation of autonomous driving.
• A “big minor change” Skyline model was released in September 2019, in which the electric power steering was unified to the steer-by-wire system; the adoption of “ProPILOT 2.0” with a more sophisticated autonomous driving Level 2 again generated much attention. The actual marketing of the steer-by-wire electric power steering, which was considered as an upfront investment, is considered to have contributed greatly to the success of "ProPILOT 2.0"; with cost reductions, more future vehicle models may be developed with this system.
• KYB also supplies EPS to motorcycle manufacturers for ATVs and UTVs, EPS for racing cars, electric rear-wheel steering components, and other products.

Power steering system and component suppliers:

• ECU & Drivers: Manufactures in-house and sources from Mitsubishi Electric.
• Motor: Made by TOP Co., Ltd. (co-developed with KYB) as well as sourced from electric and electrical parts suppliers such as Mitsubishi Electric.
• Hydraulic pump: Uses pumps manufactured in-house at KYB.

Robert Bosch Automotive Steering GmbH (Former ZF Lenksysteme GmbH)

• The company was formerly a 50:50 joint venture between Bosch and ZF Friedrichshafen AG, but the Bosch Group acquired all shares on January 30, 2015, incorporating it as a wholly-owned subsidiary, and renaming it as Robert Bosch Automotive Steering GmbH, the steering systems supplier of the Bosch Group. The company has less than a 1% share of the Japanese market for steering systems.
• The company’s manufacturing footprint for EPS is in Europe, North America, China, India, Brazil, and Malaysia.
• In September 2020, it announced a development partnership with Schaeffler AG (Schaeffler).
  Schaeffler provides a mechatronic iRWS (intelligent rear wheel steering) system that can steer the rear wheels in the opposite direction to the front wheels to reduce the turning radius, and Bosch supplies a steering control unit with security functions. Together they will develop a steering system with improved maneuverability in narrow environments, safety, and ride comfort.
• As of April 2016, the company’s products supplied to OEMs in the Japanese market consisted of the DP-EPS system equipped on the Honda Odyssey released in November 2013, and the R-EPS system equipped on the Honda Legend released in February 2015.
• The company does not have a manufacturing footprint in Japan, but supplies DP-EPS systems from its plants in North America and China for models of the 2018MY Honda Accord assembled in each of those countries.

1) Status of global facilities

Note: Only production plants for power steering parts and steering-related parts are shown.

2) Detailed list of global facilities (Facility name、location、major customers etc.)

3) Diagram of major alliances and joint ventures

Main suppliers by OEM

• Toyota: Assembly - JTEKT for both electric and hydraulic types; motor and ECU - Denso
• Nissan: Assembly - NSK for electric type, Hitachi Astemo (Hitachi AMS) for electric hydraulic / hydraulic type; motor and ECU - Mitsubishi Electric
• Honda: Electric only, Assembly - JTEKT; motor - Mitsubishi Electric
• Mazda: Electric only, Assembly – JTEKT; motor and ECU - Mitsubishi Electric
• Subaru: Electric only, Assembly, motor, ECU - all Hitachi Astemo (Hitachi AMS)
• Mitsubishi Motors: Electric only, Assembly – JTEKT; motor and ECU - Mitsubishi Electric
• Suzuki: Electric only, Assembly – JTEKT; motor and ECU - Mitsubishi Electric
• Daihatsu: Assembly - JTEKT for electric type, KYB for hydraulic type; motor and ECU - Denso

OEM destination trends from the perspective of Japanese Assembly suppliers

• JTEKT: Maintains the top position as supplier except at Nissan and Subaru
• NSK Steering: Top supplier to Nissan
• Hitachi Astemo: Hitachi AMS division is the top supplier to Subaru, but JTEKT is the top supplier to Honda although Showa is a former Honda affiliate
• KYB: Has the second largest share at Subaru, after Hitachi Astemo (Hitachi AMS), but for Nissan, other than V37 Skyline / Infiniti Q50 / 60 business to which KYB supplies steer-by-wire, sales are not expanding

Power steering assembly suppliers for each OEM (excluding models supplied on OEM basis)

Toyota

Nissan

Honda

Mazda

SUBARU

Mitsubishi

Suzuki

Daihatsu

Note: Joint venture partners in () are investment subsidiaries
Investment ratios in () indicate indirect ownership ratio.

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