AutonomousConnected Vehicle

DENSO expanding into software-based solutions

Given the changing cast of competitors that make up the evolving auto industry, DENSO has transformed its conventional business model and is expanding into software-based solutions in addition to its hardware expertise

The global auto industry is undergoing a once-in-a-century shift that will fundamentally reshape transportation. Given the changing cast of competitors that make up the evolving auto industry, DENSO has transformed its conventional business model and is expanding into software-based solutions in addition to its hardware expertise in order to help create a new mobility paradigm for society.

DENSO’s long-term policy, which was launched last year, guides the company toward its 2030 goal: to create and inspire new value for the future of mobility. The company recently launched its 2018 Annual Report, which is the first account of company activities following the release of its long-term policy. The policy and report reiterates DENSO’s strategy to achieve vision, including:

  1. Increasing performance in the fields of electrification and automated driving;
  2. Realigning organizational structure to accelerate business execution, R&D, collaboration, and other efficiencies; and
  3. Focusing on key initiatives both in and outside the auto industry to add value.

DENSO plans to focus on the areas of electrification, automated driving and connected cars to advance the future of mobility. It will also focus on non-automotive business, particularly on factory automation and agro-industrialization. Recent investments and partnerships in these key areas include:

  • Electrification: Aisin seiki and DENSO have reached a basic agreement on the establishment of a joint venture company to develop electrified drive modules and are preparing for establishment.
  • Automated Driving: Aisin seiki, ADVICS, JTEKT and DENSO have signed a basic agreement concerning the establishment of a joint venture for the development of integrated ECU software for automatic operation and are preparing for establishment. Additionally, DENSO’s investment in ThinCI speeds the development of semiconductor devices with deep learning capabilities required for next-generation automated driving technology.
  • Connected Cars: The investment in CREATIONLINE upgraded DENSO’s system to develop cloud solutions and open source software. DENSO’s collaboration with Ridecell advances the development of carsharing and ridesharing technologies and services.
  • Non-Automotive Businesses:  ASAI Nursery, Inc. and DENSO’s joint venture will create a next-generation model for horticulture using large-scale greenhouses and agricultural technology. The companies will build one of Japan’s largest agricultural greenhouses and develop technologies to improve cultivation productivity for growing vegetables. Construction is scheduled to begin in 2019.
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