Toyota Boshoku Corp. has won a contract to supply a European automaker with car seats, which it currently does for Toyota Motor Corp., according to Boshoku President Shuhei Toyoda. Toyoda, a relative of Toyota Motor chief Akio Toyoda, said his company aims to cater to automakers in Europe, which includes BMW AG and Volkswagen AG, in order to cut its dependence on the Japanese carmaker.
Boshoku is planning to hike its revenue from non-Toyota clients from the current 7% to around 10% in 2015. The company acquired a number of prominent clients after buying the automotive-interior business of Polytec Holding AG in 2011 for an undisclosed sum.
Toyoda said that although competition is very tough in Asia and other regions, Boshoku is continuously approaching possible clients. Boshoku wants to limit its profit drop to 4.1 percent in the fiscal year ending March 31, 2011 and is targeting a net income of 11 billion yen ($143 million).
The company expects its European operations to post a profit by the fiscal year that ends March 31. The company also expects a boost in sales in the next fiscal year after the Japanese government implemented subsidies and tax breaks for purchases of fuel-efficient cars.
"This shouldn't result in a decrease in the sales volume to Toyota but the company needs to diverse its customer base," Satoru Takada, an auto analyst at Toward the Infinite World research firm, said. Toyoda declined to name the European client or provide details.