Toyota supplier Denso targets 11% return on equity by 2030

Japanese auto parts maker Denso said ​on Tuesday it aims for sales ‌of 8 trillion yen ($50 billion) and a ​return on equity of 11 per cent ⁠by 2030, despite missing a lower ROE target in an earlier plan.

The Toyota supplier flagged ‌both opportunities and challenges for future growth in a statement, as ‌changes around mobility accelerate in areas ‌such ⁠as autonomous driving and software-defined vehicles.

The ⁠company also said it would aim for an operating profit margin of 10% by 2030 and ​target business investment ‌of 6.6 trillion yen over the five years until then.

In its statement, the company said it fell short of ‌the 10 per cent targets for ROE and ​operating margin in its 2025 plan. It forecast an ROE of ⁠8.1 per cent and an operating margin of 7.2 per cent in fiscal 2026, which begins in April.

Denso ‌made a bid for chipmaker Rohm this month, looking to strengthen its grip on power management chips used in electric vehicles and data centres.

It will target 8 trillion yen or more ‌in investment and shareholder returns over the fiscal ​years from 2027 to 2031 period, it added.

These include categories such as ⁠business investment, dividends of 1 trillion yen and ⁠an unspecified amount for strategic investments and share repurchases.

Denso's shares were ‌up 0.8 per cent after it unveiled the plan, trimming gains before the statement.

Published on March 31, 2026