SEI to Increase Automotive Wiring Harness Supply to Mitsubishi Motors

Sumitomo Electric Industries (SEI) will increase automotive wiring harness supply to Mitsubishi Motors in a few years. SEI will take over some contracts between Mitsubishi Cable Industries and Mitsubishi Motors because Mitsubishi Cable Industries will withdraw from automotive wiring harness supply to major automakers. SEI’s supply will increase gradually along Mitsubishi Motors’ car model changes in and after April 2010. SEI’s supply share in Mitsubishi Motors is expected to become higher than 50% and the annual sales to Mitsubishi Motors to almost double reaching several billion yen in a few years.

SEI may also be able to increase automotive component trading with PSA Peugeot Citroen of France since Mitsubishi Motors and PSA are said to be talking on the wider business cooperation. SEI has recently tried to expand the sales of automotive wiring harness to non-Japanese automakers in order to achieve 25% global share in fiscal 2012 ending in March 2013.

SEI’s automotive component business unit is estimated to post the consolidated annual revenue at 775 billion yen in fiscal 2009 ending in March 2010, which is 15% lower than in fiscal 2008, with the consolidated operating profit at 17 billion yen, about 2.8 times of fiscal 2008. SEI is one of the world top 3 suppliers of automotive wiring harness.