PSA Auto Parts: NOK (7240 JP) – More Seals for the Auto Industry
Structural growth in NOK’s mainstay Seals business is the major trend underlying our projected 10-year 5% CAGR growth for the Seals Division OP. Hybrids, mild hybrids and plug-in hybrids use 20~30% more seals than the average ICE (internal combustion engine) vehicle whether diesel- or gasoline-based. This is because, as well as the seal-consuming engine, there is the alternative battery-based drivetrain. By contrast, electric vehicles (EVs) tend to use 25~30% fewer seals; there is no engine, which is replaced by the battery (usually a battery pack, with many batteries strung together) plus the complex battery controller. EVs also tend to eliminate complicated, seal-intensive transmission equipment. Based on recent third-party forecasts and PSA auto analyst Julie Boote’s projections, we believe that, contrary to worries that automotive seals usage will shrink with the advent of EVs, seals usage per vehicle is set to increase over the next 10 years. This would be a very positive trend for NOK.NOK is engaged in the manufacture and sale of seal products, industrial mechanical parts, rubber products, and others. Along with its subsidiaries and associated companies, Co. operates in four business segments: seal, electronic device product, roll, and others. Co.'s principal products include oil seals, O-rings, vibration controls, resin products, gaskets, chemical products, mechanical seals, flexible printed circuits, flexboards for digital cameras and cellular phones, flexible printed circuit-based panel keyboards, optoelectronics products, rubber rolls for office machines and equipment, special lubricants, and others.
Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods.
PSA produces both company and sector reports. The focus of PSA’s research is to identify winners and losers as new technologies impact the top and bottom lines of corporations. Critical to our research is the clear explanation of how these new technologies work and how they impact companies and industries.
The founding partners have worked closely together for twenty years and the team has more than doubled in size since 2012.
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