JVCKENWOOD Corporation

Business Details

In addition to manufacturing and selling car AV systems, car navigation systems, drive recorders, and automotive speakers, amplifiers, antennas, cables, and devices, the segment provides telematics solutions including connected drive recorders for non-life insurance companies. It consists of three businesses: OEM Business (JKHL, ASK Industries S.p.A., etc.), Aftermarket Business, and Telematics Services Business, with major customers including domestic and overseas automakers, parts manufacturers, and insurance companies. This is the largest segment, accounting for approximately 54.9% of the group's total revenue.

Recent Overview

Despite lower revenue, business profit rose 10.6% year on year due to price revisions and fixed cost reductions

Full-year revenue for FY2026 (ending March 2026) was ¥195,748 million (down ¥7,495 million, or 3.7%, year on year), a decline driven mainly by lower revenue in the Aftermarket Business due to US tariff measures and a decrease in sales of connected drive recorders to non-life insurance companies in the Telematics Services Business. On the other hand, business profit increased to ¥5,399 million (up ¥518 million, or 10.6%, year on year), supported by the profit improvement effect from price revisions in the Aftermarket Business, strong sales trends in the domestic accessories business, and fixed cost reduction efforts across the segment.

Key Products

Growth Drivers

• Continued steady sales in the overseas OEM business, centered on ASK Industries S.p.A. (Italy)
• Strong sales trends in the domestic accessories business (contributed to results roughly in line with the prior year in FY2026 (ending March 2026) as well)
• Profit improvement effect from price revisions in the Aftermarket Business
• Improved profitability through fixed cost reductions (achieved a 10.6% increase in business profit for full-year FY2026 (ending March 2026))
• Demand from non-life insurance companies in the telematics solutions field (medium to long term)
• For FY2027 (ending March 2027), strong sales of OEM domestic accessories are expected, despite anticipated effects from memory supply shortages and price increases

Risks

• Impact of reduced revenue in the Aftermarket Business due to US tariff measures (materialized in full-year FY2026 (ending March 2026))
• Declining trend in sales of connected drive recorders to non-life insurance companies in the Telematics Services Business
• Risk of decreased sales at JKHL due to the slowdown in the Chinese economy
• Impact of memory supply shortages and price increases in FY2027 (ending March 2027)
• Risk of decreased production and sales volumes due to economic slowdown in the US and China
• Foreign exchange risk (full-year assumed rates: approximately ¥151 to the US dollar and approximately ¥175 to the euro)