Aisin AW Co., Ltd. Business Report FY ended Mar. 2016

Recent Years

Business Overview (FY ended Mar. 31, 2016)

-Sales reached JPY 1,276,500 million, an increase of 13.2% year-on-year due mainly to a rise in vehicle production by major customers.
-Operating profit reached JPY 93,000 million, an increase of 3.7% year-on-year. Despite increases in R&D expenses and depreciation costs, profit was boosted by increased sales and the Company's initiatives to improve profitability.

Business Plan

-Aisin AW Co., Ltd. (headquartered in Anjo city, Aichi prefecture) said on May 8 that the company plans to supply 7.9 million automatic transmissions (ATs) in the fiscal year ending in March 2016 (FY 2015), an increase of 1.03 million from the FY 2014 results. The company aims for the year-over-year increase of more than 1 million units for the first time. Aisin AW expects a significant increase in supply to the Toyota Group and European automakers, and by region, to the growing China market. The company is increasing production capacity of ATs in Japan and China to expand its supply volume. (From an article in the Nikkan Jidosha Shimbun on May 11, 2015)

Recent Development Outside Japan

-Aisin AW Co., Ltd. will suspend the operations of its two plants in the Tianjin Economic-Technological Development Area for three days through August 19, 2015 due to the recent explosion at the Port of Tianjin. The company reported that 10 of its employees who live in a dormitory near the blast site were injured. No direct damage was done to the plants. The two plants are scheduled to reopen on August 20 when Tianjin FAW Toyota Motor is expected to resume operations. Aisin AW is currently evaluating the state of its products in its storage facilities at the port. According to the company, it has a 1-week supply of components, and the suspension will not affect vehicle production for the meanwhile. However, if the Tianjin port remains closed for a long time, the company will have to change the port for parts delivery from Japan, which will complicate customs procedures and other matters. (From an article in the Nikkan Jidosha Shimbun on August 19, 2015)


-Aisin AW Co., Ltd. announced that it will supply its 6-speed automatic transmissions (ATs) for front-engine, front-wheel-drive vehicles to Mahindra & Mahindra Ltd. of India. This will be the first time that the company's products are used on vehicles made by an Indian automaker. The 6-speed ATs will be installed on the new XUV500 SUV, which was released in India in December 2015. Aisin AW expects this business will open up its opportunities to promote its products in the growing Indian automotive market, and aims to receive more orders from Indian OEMs. (From an article in the Nikkan Jidosha Shimbun on January 26, 2016)


Car Maker Award
Dec. 2015 Dongfeng Motor AW Receives "Excellent Supplier Award" in 2015
Dec. 2015 Dongfeng PSA AW Receives "Excellent Supplier Award" in 2015
Dec. 2015 Toyota Motor AW Receives "Prius" Project Award
Nov. 2015 Toyota Motor AW Receives Lexus "RX" Project Award
Jul. 2015 Volkswagen AW Receives "Quality Award"
May. 2015 Yulon Motor AW Receives Top "Special Contribution Award"
Apr. 2015 Toyota AW Receives "Exceptional VA Award"
Mar. 2015 Tianjin FAW Toyota Tianjin AW and AW China Receive "Quality Excellence Award"
Mar. 2015 SsangYong Motor AW Receives Top "Best Supplier Award"
Mar. 2015 Guangzhou Automobile AW Receives "2014 Excellent Cooperation Award"
Mar. 2015 Tianjin FAW Xiali AW Receives "New Vehicle Contribution Award"
Mar. 2015 Dongfeng Yulon Motor AW Receives Top "General Special Award"
Jan. 2015 Volvo AW Receives "Quality Award"
Jan. 2015 FAW Car AW Receives "Product Development Award"
Jan. 2015 SAIC Motor AW Receives "The Best Quality Award"
Jan. 2015 Suzuki Motor AW Receives Awards in the "Best Partner" and "VA/VE Proposals" Categories in 2014

R&D Expenditure

(in millions of JPY)
FY ended Mar. 31, 2016 FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 FY ended Mar. 31, 2013
Overall 65,800 55,400 52,400 52,900

R&D Facilities

Name Location
Monozukuri Center Aichi Pref., Japan
AW Technical Center U.S.A., Inc. Michigan, USA
AW Technical Center Europe S.A. Braine-l'Alleud, Belgium
AW Suzhou Technical Center Co., Ltd. Suzhou, China

R&D Activities

-In FY ended March 2016, the Company focused on next-generation products that meet diversified demand for drivetrain systems and connected vehicles by leveraging its expertise in the areas of transmissions and navigation systems. Its major development included a 2-motor hybrid transmission for front-engine, front-wheel-drive vehicles.

-At the 2016 JSAE Automotive Engineering Exposition, the Company exhibited a high torque capacity 8-speed AT, a medium torque capacity CVT, and a small torque capacity 2-motor hybrid transmission. It also showcased a sophisticated navigation technology, which features an ultra-realistic 3D city map and a meter cluster cooperation, and a conceptual video about its vehicle information technologies.

Product Development

2-motor hybrid transmission

-Aisin AW Co., Ltd. has unveiled a new 2-motor hybrid transmission for front-wheel drive vehicles, which was jointly developed with Toyota Motor Corporation. The new transmission is installed on the fully remodeled Toyota Prius that was released on December 9. Compared with Aisin AW's conventional product, the new transmission is 47mm shorter and reduces loss by approximately 20%, by drastically changing the layout of motors and other components. Aisin AW will leverage its know-how accumulated through this new transmission project to develop more advanced hybrid transmissions. (From an article in the Nikkan Jidosha Shimbun on December 12, 2015)

Electric four-wheel drive (4WD) unit

-On January 21 Aisin Seiki Co., Ltd. announced that they jointly developed a new electric four-wheel drive (4WD) unit together with two other Aisin Group companies and Toyota Motor Corporation. The unit was used in the new Prius that was launched by Toyota in December 2015. In addition to being smaller than those made by competitors, it achieves improved performance by utilizing features such as a magnet-less induction motor that suppresses drag loss from magnetic force. Aisin Seiki oversaw all aspects of the 4WD unit design, Aisin AW Co., Ltd. handled the motor, and Aisin AI Co., Ltd. worked on parts like the gears and differentials. The new electronic 4WD unit is the first new product jointly developed by Group companies. The new unit is also Aisin's first electronic 4WD unit. (From an article in the Nikkan Jidosha Shimbun on January 22, 2016)

Next-generation AT to meet EU's new CO2 emission standards

-Aisin AW Co., Ltd. (headquartered in Anjo City, Aichi Prefecture) will promote the development of next-generation transmissions, aiming to help OEMs to meet EU's new carbon dioxide (CO2) emission standards, which are expected to be enforced around 2020. In Europe, the average emission target to be achieved by all new cars will be reduced from 130 grams of CO2 per kilometer (g/km) at present to 95g/km by 2020. Under these circumstances, Aisin AW will develop next-generation automatic transmissions. The company plans to introduce a heat management system to optimize oil temperature and improve efficiency of a transmission itself. The company will also apply its technology to damp vibrations for transmissions with fewer engine cylinders. (From an article in the Nikkan Jidosha Shimbun on April 2, 2015)

New transmission for 1-motor hybrid systems

-Aisin AW Co., Ltd., headquartered in Anjo, Aichi Prefecture, has started proposing its new transmission for 1-motor hybrid systems to automakers. The new transmission will be paired with hybrid systems installed in large-sized vehicles with over 300 Nm of torque. Aisin AW has already developed a prototype of the new transmission and introduced it to some customers as one of the measures to make them achieve the upcoming European emission standards to be implemented around 2020. (From an article in the Nikkan Jidosha Shimbun on April 13, 2015)

Capital Expenditure

(in millions of JPY)
FY ended Mar. 31, 2016 FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 FY ended Mar. 31, 2013
Overall 123,236 78,820 74,854 66,632

Investments in Japan

-In October 2014, CVTEC Co., Ltd. will construct a new plant in Sasebo-shi, Nagasaki Prefecture. CVTEC is an Aisin AW group company that manufactures CVT belts. It supplies CVT belts to CVT plants of Toyota Motor Corporation and Aisin AW Co., Ltd. and its production lines are now located at headquarters plant of Toyota Motor Hokkaido, Inc. and Aisin AW's Tahara Plant. The new Kyushu plant will be CVTEC's third production base in Japan. The company aims to secure stable supplies of the CVT belts by diversifying its production sites. The new plant is slated to start production in December 2016. The total investment in the construction project is JPY 8 billion. The new plant will have an annual production capacity of 600,000 CVT belts. With the addition of the new plant, CVTEC's total CVT belt production capacity of the three production sites will be expanded to 3 million units. Its sales in the fiscal year ended in March 2014 were JPY 16 billion. (From an article in the Nikkan Jidosha Shimbun on October 27, 2014)

Investments Outside Japan

-December 2014, Aisin AW Co., Ltd. will construct a new plant for producing automatic transmissions (ATs) in Chonburi, Thailand, by 2017. The Company will invest JPY 10 billion in site acquisition and building construction of the plant. The new plant will start local production of some of its products that are currently produced in Japan and exported to Thailand. In July 2017, the plant will start producing ATs for rear-wheel drive vehicles, which will be supplied to Toyota Motor Corporation's plants in Thailand. Aisin AW aims at annual production capacity of 120,000 units. The new plant will mark the company's first plant in Thailand and third AT plant outside Japan, following the U.S. and China. By January 2015, the Company intends to establish a new production company, AW (Thailand) Co., Ltd., to promote local production at a full scale. (From an article in the Nikkan Jidosha Shimbun on December 6, 2014)

-In January 2015, AW (Thailand) Co., Ltd. announced that it has held a signing ceremony for acquiring 213,000-square-meter-land for a new plant at the Hemaraj Eastern Seaboard Industrial Estate II in Chonburi. (From a press release on January 15, 2015)

-In July 2015, the Company held a foundation stone-laying ceremony for a new plant in Chonburi. The plant is expected to be completed in July 2016. (From a press release on October 7, 2015)

Planned Capital Investments

-According to the Company's investment plans as of March 31, 2016, JPY 78,000 million is expected to be spent on facilities and equipment to manufacture drivetrain products.