Changes in Demand for Cast Components and Business Structure Driven by Vehicle Electrification
First written in FY2020. 3 of 6 entries say "Worsened", first in FY2021. Latest entry: FY2026.
Nippon Crucible moved to the "Worse" side of this theme in 2021, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 16 of 33 companies on the "Worse" side.
8 other companies' latest entry also says "Other".
- FY2026Recognizes a temporary slowdown in EV adoption, but the broader trend remains unchangedAnnual report
「Although efforts toward automotive electrification have slowed somewhat recently, the broader trend toward electrification remains unchanged, and the share of environmentally friendly vehicles is expected to increase significantly. Electrification is expected to significantly change the structure of cast components, beginning with engines, and may affect our group's business performance.」
The company adds that progress toward electrification has temporarily slowed, while maintaining the medium- to long-term risk of changes in cast-component structures and the resulting impact on business performance. - 2026-06-03WorsenedGeneral Meeting of Shareholders
「In the foundry market, the recovery in domestic automobile production and sales has been delayed, and the recovery in foundry demand has also been weak. In addition, the Company recognizes that accurately addressing the wide-ranging effects of the shift toward electric vehicles in the automotive industry over the medium to long term is its highest-priority issue.」
The Company indicated that the recovery in automobile production and sales has been delayed and foundry demand remains weak, and identified addressing the wide-ranging effects of the shift toward electric vehicles as its highest-priority issue. - FY2024-Q2MaterialisedAnnual report
「The Chinese melting furnace market has been affected by declining demand for casting products as automotive electrification has rapidly spread in China in recent years, creating a difficult business environment for the company.」
The decline in demand for cast products resulting from automotive electrification is described as having worsened the business environment for the Chinese melting furnace manufacturer, leading to a planned partial transfer of the investment and an expected loss of approximately ¥21 million on the sale of an investment in an affiliated company. - FY2022WorsenedAnnual report
「The casting market is our group's largest business field, and the casting and industrial furnace businesses together accounted for 55.7% of net sales in the current fiscal year. Approximately 90% of the casting market is for the automotive industry. Electrification has been steadily advancing in the automotive industry in recent years, and the share of environmentally friendly vehicles is expected to increase significantly.」
The company quantified its exposure to the EV-related risk: the casting and industrial furnace businesses account for 55.7% of net sales, and approximately 90% of the casting market is automotive-related. As countermeasures, it plans to advance the adoption of aluminum components, induction furnaces, and products and services suited to the market. - FY2021WorsenedAnnual report
「In the casting market, the recovery trend in domestic automobile production and sales has weakened due to the impact of semiconductor supply and demand issues. In addition, accurately addressing the broad impact of the long-term progress of automotive electrification is the highest-priority issue.」
The company positions responding to automotive electrification as the highest-priority issue in the casting market and also notes the weakening recovery trend caused by semiconductor supply and demand issues. - FY2020First statedAnnual report
「In the automotive industry, electrification has been steadily advancing in recent years. Sales of environmentally friendly vehicles, including EVs, are expected to approach 10 million units worldwide and reach 50 million units in 10 years. Electrification is expected to significantly change the structure of cast components, beginning with engines, and may affect our group's business performance.」
The company identifies for the first time, as a standalone item, the medium- to long-term risk that the spread of environmentally friendly vehicles, including EVs, will change the structure of cast components and affect business performance through the casting market.