MEIWA INDUSTRY CO., LTD.

Business Details

The core segment that manufactures and sells automotive interior parts such as Trunk Interior Products, Floor Interior Products, Seat Parts, and Roof Parts. In addition to domestic manufacturing and sales, the segment operates production sites in what is referred to as the "Global Four Poles": China (Dalian and Foshan), North America (MEIWA INDUSTRY NORTH AMERICA, INC.), and Thailand (MEIWA INDUSTRY (THAILAND) CO., LTD.). Major customers are Toyota Boshoku Corporation and Hayashi Telempu Corporation. The segment's competitive strength derives from its proprietary resin compounding and processing technologies.

Recent Overview

Sales and profit both declined year on year, weighed down by an inventory valuation loss at the Chinese subsidiary.

In the Automotive Parts segment for FY2026 (ending March 2026), sales were ¥20,971 million (down 1.0% year on year) and segment profit was ¥301 million (down 31.5% year on year). Although the company worked to pass on cost increases in materials and labor through price adjustments and to reduce costs, an inventory valuation loss (¥71 million) at the Chinese subsidiary weighed on profit. In addition, an increase in non-operating expenses, including refinancing costs, was a factor behind the decline in profitability at the ordinary income level. Segment assets contracted significantly to ¥17,652 million from the prior period, mainly reflecting a substantial decrease in accounts receivable.

Key Products

Growth Drivers

• Improving profitability by advancing the pass-through of cost increases in materials, labor, and other expenses through pricing
• Continuing cost reduction activities (optimal procurement and production allocation across domestic and overseas sites, automation and labor-saving in production processes)
• Expanding transaction share through development of non-Japanese customers and orders for new products
• Acquiring new orders through development of products supporting BEV adoption and circular economy initiatives
• Strengthening responses to supply chain risks and building an optimal procurement, production, and supply system across the Group

Risks

• Sluggish sales by Japanese automakers in the Chinese market and the risk of inventory valuation losses at the Chinese subsidiary
• Increased cost burden at North American sites due to the impact of US tariff measures
• Continued elevated levels of raw material and energy prices and ongoing increases in labor costs
• Changes in demand for existing products amid major transformations in the automotive industry such as electrification and autonomous driving
• Impact on the performance of overseas subsidiaries from foreign exchange fluctuations (yen appreciation)
• Increased supply risk and energy price volatility amid escalating tensions in the Middle East