TOKAI RIKA CO.,LTD.
6995・Prime Market・Transportation Equipment
Japan
Tokai Rika's core domestic segment, accounting for roughly half of consolidated net sales
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales to external customers | ¥259,592 million | ¥246,180 million | ↑ |
| Total segment net sales (including internal transfers) | ¥325,788 million | ¥307,672 million | ↑ |
| Operating loss | -¥1,426 million | -¥966 million | ↓ |
| Depreciation and amortization | ¥10,963 million | ¥8,212 million | ↑ |
| Increase in property, plant and equipment and intangible assets | ¥16,992 million | ¥21,627 million | ↓ |
Business Details
The Japan segment comprises Tokai Rika Co., Ltd. itself and 10 domestic consolidated subsidiaries and 2 equity-method affiliates. It produces and sells automotive parts such as HMI Products, Smart System, Seatbelt, and Shift Lever domestically, with Toyota Motor Corporation as its primary customer (net sales to Toyota of ¥139,286 million in the current period, 21.6% of consolidated net sales). Net sales to external customers of ¥259,592 million account for approximately 40% of the consolidated total, and segment sales including internal transfers reach ¥325,788 million.
Recent Overview
Net sales increased, but the operating loss widened due to higher fixed costs and a large impairment loss
In the Japan segment for the current consolidated fiscal year (April 2025 to March 2026), net sales increased by ¥18,116 million (5.9%) year on year to ¥325,788 million, driven by an increase in customer production volumes. On the other hand, despite rationalization efforts, the operating loss widened to ¥1,426 million, a deterioration of ¥460 million year on year, due to an increase in fixed costs. In addition, an impairment loss of ¥3,219 million was recorded (prior period: ¥375 million) as the book value of certain business assets was written down to their recoverable amount, reflecting harsh conditions in some businesses. Production results were ¥262,628 million (up 6.4% year on year), and sales results were ¥259,592 million (up 5.4% year on year).
Key Products
Growth Drivers
- Increase in customer production volumes, including at Toyota Motor Corporation (net sales to Toyota of ¥139,286 million in the current period)
- Enhanced added value through new product development such as "Hidden Switch"
- Deployment of new technologies and products such as child-left-behind detection systems utilizing UWB technology
- Expansion into new business domains such as gaming devices under the ZENAIM brand
- Strengthening supply chain competitiveness based on the medium-term management plan "TRV2030" (improving utilization rates through introduction of general-purpose equipment)
Risks
- Pressure on profitability due to increased fixed costs (operating loss for two consecutive periods)
- Expansion of impairment losses amid deteriorating business conditions (¥3,219 million in the current period versus ¥375 million in the prior period)
- Risk of sales concentration with Toyota Motor Corporation (21.6% of consolidated net sales)
- Risk of rising interest rates due to normalization of domestic monetary policy
- Risk of fluctuations in the procurement environment for semiconductors and critical minerals, etc.
Last updated: June 9, 2026