Toyota supplier Denso invests $1.6 billion in electric cars

Japanese auto parts maker Denso is going to spend about 180 billion yen ($1.6 billion) during three years to strengthen its ability to produce components for hybrid and electric vehicles as demand for low-emission cars is set to increase.

“Denso is committed to advancing automotive innovation and anticipating the changing needs of our customers in the transportation industry. Electric vehicles are increasingly becoming the norm throughout the world, and to meet the rising global demand for automotive electrification technologies and products, Denso is going to strengthen its ability to develop and produce them,” stated Yukihiro Shinohara, Senior Executive Officer of Denso. 

To speed up business execution around electrification, Denso is forming the Electrification Innovation Center at Denso’s Anjo Plant located in Anjo, Aichi, Japan, in May 2020. The Electrification Innovation Center will conduct advanced R&D, develop and test prototypes, and start mass production of newly developed automotive electrification products, systems, and technologies.

Along with that, now that Denso and Toyota Motor have formally agreed to consolidate their electronic component operations within Denso, Toyota’s Hirose Plant will be moved to Denso in April 2020.