DaikyoNishikawa Corporation

Business Details

Handled by the Company and its domestic subsidiaries. Manufactures and sells interior and exterior components such as Instrument Panels and Bumpers, powertrain components, and housing equipment (Bath Unit & Washbasin Parts, etc.). Major customers are Mazda Motor Corporation (¥73,666 million in sales for FY2026 (ending March 2026)) and Daihatsu Motor Co., Ltd. (¥9,816 million). This is the core base responsible for supplying Instrument Panels across all Mazda vehicle models and domestic production of Resin Oil Strainers.

Recent Overview

Segment profit deteriorated sharply, down 49.5% year on year, due to declining production volumes at the major customer and retirement benefit actuarial differences

For the full year FY2026 (ending March 2026), Japan segment sales were ¥103,795 million (down ¥5,060 million, or 4.6%, year on year), and segment profit was ¥3,429 million (down ¥3,367 million, or 49.5%, year on year). Although sales of new products increased, this was offset by declining production volumes at the major customer (Mazda) and a decrease in tooling sales. On the profit side, while the effects of cost improvement activities are steadily materializing, a significant decline in profit resulted from the combined impact of lower sales, mass-production preparation costs for new products, and retirement benefit actuarial differences.

Key Products

Growth Drivers

• Continuous promotion of cost improvement activities (elimination of waste and improved work efficiency through process improvement and standardization of business processes)
• Supplementing sales through new orders secured for electrified vehicle products (Battery Covers, High-Voltage Busbars)
• Strengthening cost competitiveness through manufacturing reform that integrates design, procurement, and production as a unified approach
• Commercialization of new products utilizing the world's first transmissive decorative technology
• Improved production efficiency through the promotion of smart factories (full automation, non-stop production, zero-defect processes)
• Increase in sales to Daihatsu Motor Co., Ltd. (¥9,816 million in FY2026 (ending March 2026), up ¥1,851 million year on year)

Risks

• High dependence on sales to the major customer (Mazda), accounting for approximately 71% of Japan segment sales in FY2026 (ending March 2026), meaning fluctuations in Mazda's production volume directly affect performance
• Continuation of the declining trend in production volumes at major domestic customers (sales down 4.6% for the full year FY2026 (ending March 2026))
• Risk of profit pressure from retirement benefit actuarial differences (materialized in FY2026 (ending March 2026))
• Short-term cost increases due to rising mass-production preparation expenses for new products
• Risk of declining demand for existing internal combustion engine components (intake manifolds, Oil Strainers, etc.) accompanying the progress of vehicle electrification
• Regional concentration risk due to the high proportion of domestic sales (approximately 61% of consolidated sales)
• Deterioration in asset efficiency, as segment profit declined significantly despite an increase in segment assets (¥114,863 million)