How Does JTEKT Company Work?

JTEKT is a global leader in automotive steering systems, particularly electric power steering (EPS) and hydraulic power steering (HPS). It also excels in drivetrain components like Intelligent Torque Controlled Couplings (ITCC) and Torsen differentials, crucial for vehicle safety and performance.

This division manufactures a comprehensive range of bearings, including ball, roller, and needle bearings, along with bearing units and oil seals. These products serve diverse industrial needs, from manufacturing equipment to renewable energy sectors.

JTEKT produces high-precision grinding machines, machining centers, cutting machines, and industrial heat treatment furnaces. These are vital for efficient manufacturing processes across numerous industries, supporting advanced production capabilities.

The company integrates mechatronics products and IoE (Internet of Everything) solutions. This focus enhances smarter manufacturing and boosts operational efficiency for its clientele, reflecting its commitment to technological advancement.

The company was established in January 2006 through the merger of Koyo Seiko Co., Ltd. and Toyoda Machine Works, Ltd. This strategic move combined expertise in bearings, steering systems, and machine tools. The current JTEKT Group 2030 Vision focuses on becoming a solution provider for societal and future mobility needs.

JTEKT continuously innovates, exemplified by the April 2025 launch of the 'Integrated Gear Bearing (JIGB).' This product merges gears and bearings to reduce size, weight, and torque loss. The company also merged KOYO Machinery USA with JTEKT Machinery Americas on January 1, 2024, to enhance its precision grinding machine offerings.

A significant portion of JTEKT's revenue is dedicated to R&D, with approximately 6% of sales allocated. In fiscal year 2023, this amounted to around ¥66 billion (approximately $600 million). Initiatives like the 'Smart Manufacturing' program in 2024, integrating IoT and AI, have reportedly boosted operational efficiency by 20%.

JTEKT's competitive edge lies in its diverse product range, global manufacturing presence, and strong technological capabilities. It holds the world's largest market share in power steering. The ability to produce both bearings and machine tools allows for synergistic knowledge application, a core aspect of its 'monozukuri' philosophy.

JTEKT is a dominant global player in automotive steering systems, with a significant market share in both EPS and HPS technologies. Its expansive international presence and strong ties with major automakers solidify its leadership in this critical automotive component sector.

The company faces risks associated with the automotive industry's rapid shift towards electric vehicles and the emerging steer-by-wire (SBW) technology. Profitability challenges have also been noted, with JTEKT India reporting a 31% profit drop and the parent company experiencing a 57.4% decline in profit before income taxes for the fiscal year ending March 31, 2025.

JTEKT is strategically positioning itself for the future by aiming to become a 'solution provider' through its 2030 Vision. This involves co-creation with customers and addressing societal needs, with a focus on developing advanced mobility solutions.

The company is investing heavily in next-generation products, including advanced EPS and steer-by-wire technology, with a planned launch by FY2026. Initiatives like 'Smart Manufacturing' using IoT and AI are being implemented to enhance operational efficiency, alongside a commitment to sustainability with targets for carbon emission and waste reduction by 2025.