Planned domination of the electrified vehicle components market by Japanese company Denso could take the world’s second-largest automotive parts supplier by sales to stealing the top spot from Bosch by doubling revenue from EV ingredients by 2025 and doubling it again by 2030.
Denso was one of the earliest suppliers to enter the electrified vehicle market, making parts for the Toyota Prius that became the world’s first mass-market hybrid car in 1997.
It already occupies a third of global market share for hybrid and electric car inverters, which gives Denso an edge when competing for business as well as economies of scale wrought and the ease of scaling up manufacturing by using existing production lines for this type of product.
But the ambitious plan to relegate Bosch requires a significant amount of capital, which Denso is considering funding through a bond sale and offloading certain business units related to internal combustion vehicles. It will also make strategic acquisitions of companies operating in the electrification industry.