Message from the President

Technology for the Earth

President Yoshinobu Hotta

 I would like to express our gratitude to our shareholders and investors for their continued support.


During the consolidated fiscal year under review, the pace of recovery of the Japanese economy slowed down due to sluggish personal consumption accompanying the weakening of the yen and soaring energy and raw material prices, although the economy showed a recovery trend mainly due to inbound demand as the restrictions on activities put in place due to COVID-19 were eased.

In the global economy, while steady growth continued due to factors such as rising wages amid a labor shortage and the easing of supply constraints on semiconductors, the outlook nevertheless remained uncertain due to the slowdown in the Chinese economy caused by a sluggish real estate market, the prolonged situation in Ukraine, the worsening situation in the Middle East, and the impact of monetary tightening in Europe and the United States.

In the shipbuilding and shipping industries, which are major customers of our company, there were signs of a gradual recovery in the world's new shipbuilding deliveries in 2023, although they did not reach the levels seen before the COVID-19 pandemic. In terms of market share by country, China increased its market share for all types of vessels, accounting for approximately 50% of the global market, driven by factors such as the depreciation of the yuan and the decline in steel prices.

In this business environment, our group is analyzing market trends and diversifying customer needs, and based on the results of that analysis, we are strengthening our maintenance-related sales activities. Furthermore, together with two Chinese licensees, we are actively expanding sales activities in order to increase our market share and improving our brand value in the booming Chinese market.

Currently, the Group's top priority is to simultaneously pursue the reduction of greenhouse gas (GHG) emissions and the improvement of profitability, and in order to achieve this goal, we plan to make growth investments totaling 45 billion yen by the fiscal year ending in March 2028.

 As for tangible asset investments, we will invest in test operation facilities for next-generation fuel-compatible engines at the Himeji Plant, and will proceed with upgrading the existing facilities at the Moriyama Plant, striving to improve production efficiency and ensure product quality. Additionally, we will invest in in-house production in an effort to reduce costs.

In terms of investment in intangible assets, we will promote investment in R&D to achieve the early development of engines compatible with next-generation fuels. Through investments in information, we will strive to improve productivity and build a new revenue base by utilizing AI and IoT technology. We are also actively investing in human capital, focusing on upgrading and developing the skills and capabilities of our employees. Through these efforts, we will strengthen our organizational capacity to respond flexibly to changes in the market environment and build a solid management foundation to support sustainable growth.

In addition, the company plans to change its name on the anniversary of its founding on May 2 next year.

For more than 100 years since its establishment, our group has consistently pursued its social mission of being a part of the social infrastructure. Based on our corporate philosophy of “We will hone our robust creativity and outstanding technology, offer value that enriches society, hope for coexistence with people and move forward without limits,” we have protected the safe and secure lives of people both on land and sea by supporting marine logistics with our marine engines as well as securing regular and emergency power sources with our land engines.

However, with rising environmental awareness and the rapid progress of digital transformation, major changes in business and technology are required.

In response to this, we will change our company name to “Daihatsu INFINEARTH” in order to focus on developing and manufacturing environmentally friendly engines compatible with next-generation fuels and to provide high-added-value products and services that utilize digital technology.

The new company name is a combination of the words “Infinity” and “Earth,” and further clarifies our group's mission of “TECHNOLOGY FOR THE EARTH.”

 Our group will continue to strive to be a sustainable company that pursues technological innovation and offers endless new possibilities for the global environment.

 We look forward to the continued support of the shareholders and investors in our group.

Yoshinobu Hotta, President