CENTRAL AUTOMOTIVE PRODUCTS LTD.

Business Details

The core business of the Chuo Jidosha Kogyo Group, engaged in wholesale sales and import/export of automotive parts, accessories, and supplies, as well as the development and sale of related services. Domestically, the segment expands sales of high-value-added products through community-based sales activities, while overseas it develops repair parts sales leveraging a global network spanning Singapore, the United States, the Middle East, Southeast Asia, and other regions. The segment also possesses in-house developed products such as Alcohol Detectors and proprietary coating agents, differentiating itself as a development-oriented company. This is the flagship segment, accounting for approximately 77% of consolidated net sales.

Recent Overview

Overseas sales grew significantly, up 31.8% year on year, with the newly consolidated Morita Sangyo also contributing

In the Automotive Parts & Accessories Sales Business for FY2026 (ending March 2026), net sales were ¥35,914 million (up 10.9% year on year), and segment profit was ¥10,293 million (up 102% year on year, i.e., approximately double). Overseas sales achieved substantial growth, reaching ¥10,521 million, up 31.8% year on year. Although the situation in the Middle East had some impact toward the end of the fiscal year, overall sales exceeded the prior year, aided by the contribution from Morita Sangyo (repair parts for Latin America), which was made a consolidated subsidiary in April 2025. The Alcohol Detector business continued its high growth, with sales of ¥1,571 million (up 27% year on year). Depreciation and amortization increased from ¥119 million in the prior year to ¥258 million, reflecting the impact of M&A and capital investment.

Key Products

Growth Drivers

• Substantial expansion of overseas sales (up 31.8% year on year in FY2026 (ending March 2026)): expanded sales of proprietary products and new customer development leveraging global sites
• Expansion of business domain through M&A: incorporation of Latin America-focused repair parts sales through Morita Sangyo Co., Ltd. (consolidated from FY2026 (ending March 2026))
• Expansion of market share for Alcohol Detectors by responding to demand for cloud management and automated pre-driving check functions (sales up 27% year on year in FY2026 (ending March 2026))
• Strengthening of community-based sales activities: enhanced customer relationships utilizing the newly built Tokyo Branch, designed as a showroom-style office, and the Nakanoshima R&D Center
• Maintenance and improvement of gross profit margin through expanded sales of high-value-added proprietary products
• Promotion of business expansion strategy and branding strategy based on the new Medium-Term Management Plan (FY2026-FY2028)

Risks

• Impact on demand for parts and accessories from sluggish domestic new vehicle sales (registered vehicles down 3.5% year on year in FY2026 (ending March 2026))
• Impact on overseas sales (particularly to the Middle East) from the prolonged situation in the Middle East: some impact occurred on sales to the region toward the end of the fiscal year
• Risk of demand fluctuation in the overseas repair parts market due to U.S. trade policy (tariff trends)
• Risk of rising procurement costs due to inflation and foreign exchange fluctuations
• Risk of demand normalization for Alcohol Detectors following the conclusion of the special demand surge from regulatory changes
• Increasing burden of integrating M&A targets and amortizing goodwill (goodwill amortization of ¥102 million and balance of ¥3,002 million in FY2026 (ending March 2026))