Japanese auto parts supplier Denso (Denso) 2010 on July 8, said in view of the growing Chinese auto parts market demand, the company plans to significantly enhance China factory parts and car air-conditioning capacity within a year.
Denso CEO Nobuaki Katoh said: "We plan to increase the capacity of China's air conditioning for vehicles by several hundred thousand." In addition, he also mentioned: "In June 2010, Toyota was located in Nansha, Guangzhou, China. The factory, that is, the Denso Nansha Plant, stopped production for four and a half days due to the strike of 1,100 workers, but it did not have much impact on the profit of Denso. Instead, the increase in demand in the Chinese market prompted Denso to expand production to a large scale. Prepare for the occasion."
According to reports, Denso also plans to cut the cost of its supply of components for OEMs in emerging market models by half, in order to use the saved funds for larger-scale procurement in the local market.
In addition, Toyota Motor plans to produce 100,000 Corolla cars each year from its factory in Changchun, China in the first half of 2012. At the same time, Japan's second-largest automaker Honda plans to increase its annual capacity of its Chinese factories by 28% in the first half of 2012 as a major first-class component supplier for the two automakers. It is necessary to increase the production capacity of its Chinese factories in order to further expand China's spare parts business.
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