Some auto parts companies in Japan begin to transfer to emerging countries such as China

Affected by Japan’s 3.11 earthquake, Japan’s domestic automakers have significantly reduced their production. Mid-size auto parts companies have also been affected by their operations and are forced to adjust their production. Some companies have begun to shift production overseas and seek out outlets in emerging countries such as China and Mexico.

According to reports, KANEMITU Co., Ltd., a leading automotive parts company in the Kansai region, has decided to increase the production capacity of automobile belt pulleys in China to 1.5 times. The next step is to consider setting up a plant in India. EGASUS, which is known for producing automobile seat belt retractable devices, is also known. The company plans to build a new production workshop at the Tianjin plant in China during the year, increasing the existing production equipment from 12 to 28, and the planned sales will increase from 1.7 billion yen to 5 billion yen by 2014; the famous automobile clutch manufacturer, ASIDI (EXEDY) decided in February this year to invest 1 billion yen in the Chinese market to double the existing torque converter capacity, and also plans to spend 1.5 billion yen to build a new torque converter factory in Mexico. It will be implemented in January next year. Mass production; The Sekisui Machine Manufacturing Co., Ltd., which manufactures automotive plastic molding molds, will also increase its overseas business. It plans to set up additional outlets in Mexico, Indonesia, and Taiwan during the year to expand mold manufacturing and maintenance operations.

The report pointed out that it is expected that vehicle manufacturers in Japan will return to normal due to disaster reduction. However, in the long run, new domestic vehicle sales will shrink with the aging of youngsters. It is an unavoidable issue for Japanese auto parts manufacturers to develop new markets in emerging countries. "Speed" will be the key to success.

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