TS TECH CO., LTD.
7313・Prime Market・Transportation Equipment
Business
TS TECH Co., Ltd. began manufacturing seats for two-wheeled vehicles in 1954 and is now a global automotive parts group with 49 affiliated companies in Japan and overseas. The company manufactures and sells Seats and Resin Parts for Two-Wheeled Vehicles as well as Seats for Four-Wheeled Vehicles and Interior Components for Four-Wheeled Vehicles across four segments: Japan, Americas, China, and Asia & Europe. Its main customer is the Honda Motor Co., Ltd. group (Honda), and of the ¥442,316 million in revenue for FY2026 (ending March 2026), Honda Development and Manufacturing of America, LLC accounted for 36.0%, Honda Canada Inc. for 14.7%, and Honda Motor Co., Ltd. for 13.4%. The Americas is the largest segment, accounting for approximately 59% of revenue, and the company is also working to acquire new non-Honda customers in China and Asia & Europe.
Business Model
The company operates a build-to-order production system linked to the production plans of its major customer, Honda, across four regions worldwide, generating revenue by locally producing and delivering seats and interior components. Approximately 93% of revenue is composed of the four-wheeled vehicle business (seats and interior components), with the two-wheeled vehicle business and other businesses complementing the remainder. Research and development expenses amount to approximately ¥14,100 million annually, and the structure is designed to maintain and expand business rights through joint development with customers, centered on safety, comfort, and environmental technologies.
Company Strengths
In FY2026 (ending March 2026), sales revenue included ¥159,256 million (36.0% of total) to Honda Development and Manufacturing of America, LLC, ¥64,889 million (14.7%) to Honda Canada Inc., and ¥59,134 million (13.4%) to Honda Motor Co., Ltd., with these three Honda Group companies alone accounting for approximately 64% of sales revenue. The company has a stable order base built on long-term trading relationships dating back to its founding.
The company has established a local production and local delivery system through 49 domestic and overseas affiliated companies across four segments: Japan, Americas, China, and Asia & Europe. Starting with its entry into the United States in 1977, the company progressively expanded its operations to the Philippines, Thailand, India, Poland, and other locations. Total capital expenditure in FY2026 (ending March 2026) reached ¥21,228 million, with continued investment in new-model-compatible equipment and molds across each region.
Total research and development expenses for the fiscal year under review amounted to ¥14,100 million. The company advances development across three axes—safety technology, appeal and comfort technology, and environmental technology—with achievements including mass production of seats incorporating rear-seat side airbags, mass adoption of resin parts using sustainable materials, and development of next-generation cabin technologies such as rotating devices and vertical/horizontal sliding mechanisms.
ENVALITH's Perspective
Performance Trend
Revenue was ¥442,316 million (down 4.0% year on year), a decline after two years of growth. Operating profit was ¥10,325 million (down 37.2% year on year), the lowest level since FY2022 (ended March 2022). The main causes were the impact of production cuts for major customers and increased expenses in the Americas. External factors compounded this, including expanding market share of Chinese automakers in China, changes to production plans in the US due to a review of EV strategy, and rising manufacturing costs due to inflation. For FY2027 (ending March 2027), the company forecasts revenue of ¥440,000 million (down 0.5%) and operating profit of ¥13,000 million (up 25.9%), anticipating a recovery in profit driven by cost reduction effects. Operating profit over the past five fiscal periods has trended as follows: ¥22,998 million → ¥15,257 million → ¥17,507 million → ¥16,428 million → ¥10,325 million, remaining at just 55% of the peak level recorded in FY2022 (ended March 2022).
Growth Strategy
Three pillars: expansion of New Business (Non-Honda Products), profitability recovery in the Americas, and development of the Indian market
Establishing a joint venture for seat development and parts manufacturing with the Krishna Group, the main supplier of seats for four-wheeled vehicles to Maruti Suzuki, among others. The company aims to capture growing automobile demand in India and build a revenue base for New Business (Non-Honda Products).
New plants have begun operations in India and China in connection with the launch of seats for four-wheeled vehicles ordered by new customers. Chongqing TS Auto Parts Co., Ltd. has also been consolidated. The strategy is to offset the impact of production cuts by a major customer in China through New Business (Non-Honda Products).
Promoting automation of production processes, logistics improvements, and cost reduction activities in collaboration with business partners. Urgent recovery is needed in the Americas operating margin, which fell to 0.6% in FY2026 (ending March 2026). Overall operating profit for FY2027 (ending March 2026) is projected to increase by 25.9%, premised on improvement in the Americas.
Completed the consolidation of multiple production sites in the Saitama area into the Gyoda Plant. Also implemented the absorption-type merger of San Kagaku Kogyo by TS Parts and Service Co., Ltd., aiming to improve the efficiency of the domestic business structure. Profitability improvement effects are expected through fixed cost reduction and increased production efficiency.
Last updated: July 19, 2026