Hitachi Automotive Systems, Ltd. Business Report FY ended Mar. 2014

Business Highlights

Financial Overview

(in billion JPY)
  FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 Rate of Change
Sales 892.1 806.8 10.6 -Sales increased year-on-year due to strong demand in the global automotive industry and to the last-minute, new-car buying demand in Japan before the consumption tax increase went into effect.
Operating income 47.3 35.4 33.6 -

Management Policy

-In 2014, the Company announced new business strategies for strengthening regional management and expanding business around new sites.

1. Expanding production in Mexico by launching operations at Hitachi Automotive Systems Queretaro, S.A. de C.V. in 2014.
2. Conducting joint development with Hitachi America, Ltd. in order to increase testing and development capabilities in North America.
3. Planned amount of new business investment: JPY 45.0 billion (FY 2013-FY 2015)

1.Enhancing sales operations
  • To increase local sales offices from 4 to 6 by March 2016
  • To increase sales personnel
2. Increasing local development capabilities
  • To increase the number of design staff from current 90 to 210 by March 2016
  • To establish a new facility in Guangzhou that will have a fully integrated manufacturing structure, from conducting product development and designing up to manufacturing.
3. Planned amount of new business investment: JPY 30.0 billion (FY 2013-FY 2015)


-Tha Company announced that it will supply lithium-ion battery packs for the 2014 Nissan Pathfinder Hybrid, which was released in the North American market. Hitachi Vehicle Energy, Ltd., a group company of Hitachi Automotive Systems, will manufacture battery cells, and Hitachi Automotive Systems Americas, Inc. will assemble battery packs at its plant in Kentucky in the United States. (From a press release on November 13, 2013)

Outlook for FY ending Mar. 31, 2015

(in billion JPY)
  FY ending Mar. 31, 2015
FY ended Mar. 31, 2014
(Actual Results)
Rate of Change (%)
Sales 940.0 892.1 5.4
Operation income 60.0 47.3 26.8


R&D Expenditure

(in billion JPY)
  FY ended Mar. 31, 2014 FY ended Mar. 31, 2013
Overall 59.7 58.3

R&D Structure

Integrates the design and research & development division of Hitachi Vehicle Energy, Ltd. into its own operations
-The Company announced that it will integrate the design and research & development division of Hitachi Vehicle Energy, Ltd. into its own operations, effective April 1, 2014. By consolidating the two companies' electric vehicle technologies, Hitachi Automotive Systems is poised to strengthen its electric powertrain business. Combining Hitachi Vehicle Energy's lithium-ion battery control technology with Hitachi Automotive Systems' electric drive vehicle system control technology is expected to create an optimum environment to develop advanced solutions. Specifically, Hitachi Automotive Systems will design advanced battery management systems with more sophisticated battery control functions by utilizing Hitachi Vehicle Energy's battery technology and its own expertise in electronics, control, and software technologies. This integration will also allow the Company to improve its development efficiency and provide high-performance, excellent-quality batteries for the next-generation. (From an article in the Nikkan Jidosha Shimbun on March 4, 2014)

Enhances global development and production capabilities
-The Company will enhance its global development and production capabilities. To deal with global expansion of automakers and an increase in local assembly, the Company will strengthen product development and proposals to meet the needs of the local market. Aiming at expanding business with Japanese and non-Japanese automakers in addition to its existing business partner Nissan/Renault, the Company is considering the possibility of setting up new production bases in emerging markets. The Company will also focus on developing electronic control units, hybrid systems and other electronic and electric–powered components. With these developments, the Company aims to cope with the diffusion of electronic control units for vehicles and plug-in hybrid vehicles associated with the trends for improved fuel efficiency and tighter emission control regulations. The Company will increase research and development costs of electronic controlled/electric parts to 48 billion yen in 2015 from 29 billion yen in 2012, also increasing the development personnel to 1,000 from present 530. (From an article in the Nikkan Jidosha Shimbun on Jun 17, 2013)

-The Company holds the following test courses in Japan:
  • Hokkaido Tokachi test courses, Hokkaido,
  • Sawa test courses, Yamanashi Pref.
  • Yamanashi test courses, Yamanashi Pref.
  • Atsugi test courses, Kanagawa Pref.

Product Development

Drive motors and inverters
-The Company has consolidated its drive motors into three kinds. The company now has three types of drive motors in the same shape but with three different diameters to match different outputs for 110kW, 70kW and 40kW. These motors can also meet subtle output requirements by changing their thickness on a motor axis side and by adjusting winding amount. The company will develop three or four kinds of inverters as well to match different allowable current capacity. The Company can respond to any automaker's demand by choosing appropriate parts from this new lineup while generating volume efficiency. The new motors and inverters are expected to be mounted on models which will be launched in the latter half of 2016. (From an article in the Nikkan Jidosha Shimbun on March 26, 2014)

Investment Activities

Capital Expenditure

-During fiscal year that ended Mar. 2014, the Company invested JPY 75.1 billion to increase production volume of automotive components and for aseismic reinforcement.

-The Company plans to invest JPY 68.0 billion as capital expenditure for fiscal year that ends Mar. 2015.

Investment Outside Japan

-The Company is constructing new plant in India, which is planed to commence its operation in 2015.