Unifying the Group’s Collective Wisdom to Create New Value
Integrating Technologies Toward Mobility as a New Social Infrastructure
Toward Building a Foundation Supporting Society Beyond the Boundaries of Automobiles
The automotive industry is said to be undergoing a once-in-a-century transformation. In this transformative period, the Sumitomo Electric Group is focusing on more than improving vehicle performance. It faces a monumental challenge: to reconceive transportation itself as part of the social infrastructure. Yoshiyuki Ogata, Managing Director and General Manager of the Automotive Business Unit, who leads the business operations, describes the current situation as “a fundamental departure from the existing trajectory.”
“What we are facing now is a fundamental transformation of mobility. For example, one challenge is how to ensure that elderly people in sparsely populated areas who have surrendered their driver’s licenses can travel freely to the places they want to go. To solve these pressing social issues, we need to redefine all forms of mobility— including electric scooters, micromobility devices, and even flying cars—as part of our business scope. Until now, we have been manufacturing automobile parts, but from now on, we must commit ourselves to building the infrastructure that supports mobility.” (Ogata)
The Sumitomo Electric Group’s automotive business has established a solid global position as a supplier of automotive parts, primarily wire harnesses. However, Ogata sees beyond this, as he looks ahead of the Sumitomo Electric Group’s long-term 2030 VISION and envisions a connected society where everyone can travel safely and comfortably.
“The essence of our strategy is not simply to sell high-performance components. We are committed to building a foundation that adds new value to all forms of mobility, positioning the ability to move as a fundamental part of social infrastructure. Our social responsibility lies in how we apply our technology to address society’s pressing challenges. Fulfilling that social responsibility remains the unchanging core principle of the Sumitomo Electric Group.” (Ogata)
Accelerating Groupwide Strength through Synergies—the Convergence of Communications, Electric Power, and Sensors
The value of vehicles is shifting from hardware to software amid the rise of software-defined vehicles (SDV). In this paradigm shift, the integration of how the Sumitomo Electric Group’s long-developed communications and electric power technologies will be the decisive source of its competitive advantage. The Sumitomo Electric Group has core business areas in the digital/AI and energy fields. By strengthening collaboration among these fields, it can expand its operations in unique convergence domains that competitors cannot easily replicate.
“As autonomous driving technology advances, the amount of data exchanged inside and outside vehicles is increasing exponentially. By leveraging our expertise in optical fiber technology developed through our infocommunications business, as well as our connected gateway (GW) technology—a product that links mobility with digital/AI systems—we can seamlessly connect in-vehicle networks with external infrastructure. Specifically, we are developing technology that transmits driver health information detected by advanced sensors developed by our group company Sumitomo Riko Company Limited (hereinafter referred to as Sumitomo Riko) to the cloud via a connected GW and immediately provides feedback to vehicle control. Furthermore, by combining our battery design technology with the power grid expertise of our group company Nissin Electric Co., Ltd. (hereinafter referred to as Nissin Electric), we are building a new business called sEMSATM, an energy management system that efficiently utilizes EV batteries by connecting them to the power grid.” (Ogata)
Sumitomo Electric has strengthened group synergies by acquiring full ownership of Nissin Electric in 2023 and Sumitomo Riko in 2026.
“We are maximizing synergies by placing ANTech at the core of our technology hub, where knowledge from diverse industries intersects. Focusing on cross-industry domains is our proactive business strategy in the SDV era.” (Ogata)
Preserving the Spirit of Traditional Craftsmanship and Paving the Future
Meanwhile, Ogata’s strategy is not limited to flashy cutting-edge technology. Rather, he places deep trust in the on-the-ground capabilities that have been built over more than 120 years.
“To make our offensive strategy to pioneer cutting-edge technology effective, it is essential to simultaneously innovate our defensive efforts—especially by thoroughly refining manufacturing operations centered on our core wire harness business. In an era where software defines the car, the importance of the wiring harness, which is the physical connection point, is becoming increasingly significant. Next generation mobility can only be realized with absolute hardware reliability.” (Ogata)
By simultaneously advancing the offensive strategy of ANTech and reinforcing the defensive strategy of Sumitomo Wiring Systems, Ltd. (hereinafter referred to as Sumitomo Wiring Systems), whose manufacturing sites—including wire harness production—exemplify this approach, we constantly ask ourselves, “What is unique to us?” Through this, we build an overwhelming strength that keeps us from being caught in price competition. That sense of unity is the driving force toward the future.
“We cannot maintain the status quo. Therefore, we will strengthen cross industry business synergies within the Group. Our strength lies in group synergies arising from combining different industries.” (Ogata)
He concluded, “A bright future is something we create ourselves.”
NEXT
Where Knowledge Intersects, Seeds of the Future Take Root
- ANTech’s Role in Developing the Neural Network for Next-Generation Mobility -
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