Denso grows beyond Toyota

Insight into the supplier strategy of Denso

Denso is the largest automotive supplier in Japan and an integral part of the Toyota Group companies. The company produces a range of products, with leading market shares in climate control, engine management and body electronics. Denso is considered to be a core member of the Tokyo Group of suppliers, with Toyota Motors owning 24.59% of its shares. Toyota Motors has made it clear that it wants to keep Denso as one of its core group suppliers and has hinted at establishing closer ties to the company, primarily as a means of thwarting potential takeover bids. Toyota Motors showcases Denso as an example as to how it wants other core Toyota Group suppliers to become strong and innovative competitors in the global market. Denso has become a leading global supplier and competitor in a range of automotive components, but is tying its future too closely to Toyota Motors a winning strategy? No doubt Toyota Motors will continue to be a growth juggernaut, but should Denso seek some independence?