F.C.C.CO.,LTD.

Business Details

Manufactures and sells clutches for motorcycles, scooters, and ATVs (buggies), as well as EV/CASE Domain Products. Major customers include the Honda Motor group. The company has manufacturing bases in India, Indonesia, Vietnam, Thailand, the Philippines, China, Taiwan, and Brazil, and has achieved a market share of over 70% in India. Mass production of new EV-oriented products such as Laminated Motor Cores has also begun, and the company is pursuing both maximization of profitability in its core clutch business and development of new businesses in parallel.

Recent Overview

Increased sales in India and Brazil absorbed the headwinds of yen appreciation and Vietnam's regulations, resulting in higher revenue and profit

In the Motorcycle Business for FY2026 (ending March 2026), despite the impact of yen appreciation and buying restraint due to Vietnam's gasoline motorcycle regulations, sales of motorcycle clutches increased in India and Brazil, resulting in revenue of ¥124,691 million (up 3.6% year on year). Operating profit rose to ¥12,230 million (up 1.2% year on year) due to the effect of higher revenue, despite the recording of product warranty provisions, provisions for costs related to the consolidation of production bases in China, and increased material costs in some countries. Capital expenditures increased significantly to ¥6,748 million from ¥5,022 million in the prior period, reflecting active growth investment.

Key Products

Growth Drivers

• Steady expansion of demand in the Global South motorcycle market, centered on India and Indonesia
• Maximization of profitability through maintaining a market share of over 70% in India and the introduction of high-value-added technology
• New revenue contribution in the EV/CASE domain through the start of mass production of Laminated Motor Cores in India and Indonesia
• Securing e-Axle orders and ASEAN expansion through the capital and business alliance with DAT BIKE of Vietnam
• Expansion of Motorcycle Clutch sales in the Brazilian market (revenue in the 'Other' region increased 16.3% year on year in FY2026 ending March 2026)

Risks

• Downward pressure on revenue and operating profit from the progress of yen appreciation (foreign exchange impact remains a negative contributor in FY2026 as well)
• Risk of additional provisions for product warranty reserves (uncertainty regarding the number of defects and expected repair costs; balance of ¥9,099 million at the end of FY2026)
• Buying restraint and declining sales due to tightening of gasoline motorcycle regulations in Vietnam
• Occurrence of one-time costs associated with the consolidation of production bases in China and uncertainty over the outlook for the Chinese market
• Medium- to long-term risk of shrinking demand for clutches for internal combustion engines as electrification progresses