Formulation of the 2025 Medium-term Management Plan
- Accelerating Efforts to initiatives for BEV and Intelligence by allocating additonal Strategic Investments of 500 Billion Yen over the Next Three Years -
Sep. 14, 2023
AISIN CORPORATION held its Medium- to Long-term Business Strategy briefing on September 14, 2023.
The environment surrounding the automotive industry has been undergoing drastic changes, significantly transforming the structures and values required of cars. Reacknowledging its targets for 2030, To pursue growth opportunity under these changes, AISIN has formulated its business growth strategies and 2025 Medium-term Management Plan with an eye toward 2030 to realize its group philosophy of “Inspiring ‘movement,’ creating tomorrow” by leveraging the strengths it has cultivated.
A summary of the briefing is as follows.
1. Targets for 2030
・We will make efforts in BEV and intelligence by offering high-value added BEV products that can help improve energy consumption of the entire vehicle and products featuring safety and comfort that improve user experience.
・Through portfolio reforms, we will define BEV products, safe and comfortable entry, and braking systems as growth areas, and aim to achieve sales in the order of 5.5–6 trillion yen by 2030.
・Over the next three years, we will strengthen our earnings structure and reduce our assets at the Group level to generate 500 billion yen, which we will allocate to further investments in growth areas and additional shareholder returns.
We will also reallocate human resources in the order of 3,000 people in total by 2025 through reskilling, etc.
2. Business growth strategies
[Initiatives for Electrification and BEV]
・We are engaging in the advance development of miniaturization technologies, thermal management technologies, packaging technologies that package various components, and “Xin1,” which features an integrated control of those technologies, as a third-generation product lineup to be launched in 2027.
・We have been accelerating the development of battery frames not only to protect batteries in the event of a collision, but also to improve energy consumption and reduce battery degradation with thermal management.
・We have been planning and conceptualizing functionally integrated body components using gigacast, etc., to reduce the number of components.
・Through sales promotion for high-value added products, such as Cooperative regenerative braking systems and Electric-assisted parking brake, which is expected to see a further increase in demand in the BEV market, we will expand our business scale further .
[Initiatives for Intelligence]
・We will contribute to enhance the value of cars through integrated control of vehicles by combining products related to driving, turning and stopping, such as eAxle and steering, in addition to controlling the movement of the entire car using brakes.
・We will add sensing functions using sonars and cameras to system products, such as power sliding doors, and integrate cognition, judgment, and movement to realize “stress-free entry“ and a “comfortable mobile space” that enable safety assistance and behavior prediction based on the situation.
3. 2025 medium-term plan with an eye toward 2030
・Through “restructuring of the business portfolio,” “profitability improvement of existing products,” “resource shift to growth areas,” and an increase in sales of power train units, we aim to achieve the following 2025 medium-term management targets: net sales of 5 trillion yen; operating profit of 300 billion yen or more; operating profit margin of 6% or more; and ROIC of 10% or more.
・To achieve sustainable growth and increase corporate value over the medium to long term, we will pursue business expansion in growth areas and improve capital efficiency with the aim of raising our PBR to more than 1x as soon as possible.
■ Materials related to the Medium- to Long-term Business Strategy briefing can be downloaded from the following link: