Targeting 470 billion JPY in sales by 2016
Mitsubishi Electric Corporation (TOKYO:6503) announced today its strategies to enforce its global elevator and escalator business with aims to achieve sales of 470 billion yen by the fiscal year ending March 31, 2016. By the same year, the company also aims to increase its overseas sales ratio in this business from the current 30% to 35%, increasing the annual number of overseas orders received by 70% to 103,000 units.
In China, which is expected to generate almost half of the global demand in the near future, Mitsubishi Electric aims to achieve sales of 66,000 units in 2015 and position itself as the market leader. In addition to incorporating cutting-edge elevator technologies such as energy-saving, power regenerative functions and variable speed, the company will develop middle and high-speed elevators featuring local preferences. In China, the company offers two brands—the Mitsubishi Electric brand for the premium market, and the Shanghai Mitsubishi Elevator brand for the middle market.
With the launch of the new NEXIEZ series elevators this year, Mitsubishi Electric will also expand sales in regions such as the Middle East, South and Southeast Asia where the company already has high market shares. Particularly in India, Mitsubishi Electric will expand its targets to include the middle market, and expects the number of annual orders received to increase 3.5-fold in the fiscal year ending March 2016. The company will also reinforce its production capabilities at Mitsubishi Elevator Asia Corporation, Ltd. located in Thailand, which is one of the company’s core factories outside Japan that manufactures the NEXIES series.
By 2016, the company will also seek to enter 20 other markets including those in South America and Africa, intending to increase the number of countries where Mitsubishi Electric elevators are sold to 109.
Although a surge in demand for new products is not expected in Japan, the U.S., Europe and other developed markets, Mitsubishi Electric expects to see a strong demand for renewals in these markets, because elevators and escalators currently in operation will soon be in need of replacement. In Japan, for example, demand for renewals is expected to increase by 70% in fiscal 2016.
Mitsubishi Electric will aim to strengthen its position as the market leader especially in Japan by selling 7,000 units of new elevators and escalators in fiscal 2016, which is 50% more than the current number. The company also intends to increase the number of replacement units sold in fiscal 2016 2.5-fold to 7,000. Mitsubishi Electric will also promote products linked to security systems as well as other options that improve user convenience and transportation efficiency.
Due to the recent global economic turndown, the building construction market had been quite stagnant worldwide. Global market volume of elevators and escalators, however, is expected to grow by 30% to 630,000 units in the fiscal year ending March 31, 2016, owing to recovery mainly in China, India and other emerging markets. As one of the leading manufacturers in the global market, the Mitsubishi Electric Group has sold more than 800,000 units of elevators and escalators in 89 countries since it entered this business in 1931. Mitsubishi Electric’s elevator/escalator business expects 370 billion in sales this fiscal year ending March 31, 2011.
There is also an increasing demand for elevators and escalators that are more energy efficient and have lower impact on the environment, in addition to growing demands for improvements in product safety, comfort and efficiency. With the global market structure changing and competition becoming intense, Mitsubishi Electric has set its product, marketing and sales tactics so that it will best suit demands in each market in order to strengthen global operations. To fulfill the various market requirements worldwide, the company is also in the midst of developing the world’s fastest elevators.
About Mitsubishi Electric’s elevators and escalators business
Mitsubishi Electric’s production of elevator components started in 1931, and until now the company has, as the leading elevator/escalator manufacturer in Japan, provided vertical transportation characterized by safety, comfort and efficiency. Recent notable installations include Japan’s largest-capacity elevators for 80 persons for a building in Osaka, Japan’s fastest elevator for the Landmark Tower Yokohama, skeleton double-deck elevators for the Midland Square in Nagoya and spiral escalators in the Forum Shops in Las Vegas.
Inazawa Works, located in Inazawa City of Aichi Prefecture, Japan is the domestic base of production as well as the global base for development of Mitsubishi Electric’s elevators and escalators. It oversees the technological operations of the company’s 12 elevator/escalator factories around the world, including Mitsubishi Electric de Mexico, S.A. de C.V. (Mexico) established in 1976, Shanghai Mitsubishi Elevator Corporation, Ltd. (China) established in 1987, Mitsubishi Electric Shanghai Electric Elevator Corporation, Ltd. (China) founded in 2002 and Mitsubishi Elevator Asia Corporation, Ltd. in Thailand, which was established in 1991 and now functions as the core factory for overseas operations.
The 173 meter-high elevator testing tower “SOLAÉ”, which was built on the grounds of Inazawa Works in 2007, is used for R&D of high-speed and large-capacity elevators for super-high rise buildings. Mitsubishi Electric endeavors to continue its efforts in providing safe, comfortable and highly efficient elevators and escalators.
About Mitsubishi Electric
With over 85 years of experience in providing reliable, high-quality products to both corporate clients and general consumers all over the world, Mitsubishi Electric Corporation (TOKYO:6503) is a recognized world leader in the manufacture, marketing and sales of electrical and electronic equipment used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and building equipment. The company recorded consolidated group sales of 3,353.2 billion yen (US$ 36.1 billion*) in the fiscal year ended March 31, 2010. For more information visit http://www.MitsubishiElectric.com/
*At an exchange rate of 93 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2010
Mitsubishi Electric Corporation
Overseas Marketing Division, Building Systems Group
Shiho Mori, +81-3-3218-3583
Public Relations Division
Yurika Fujimoto, +81-3-3218-3380