On Jan. 8, Mitsubishi Electric Corporation (TOKYO:6503) announced a strategy to increase the annual sales of its domestic and international railway transportation systems business by 50% from the current ¥150 billion yen to ¥230 billion yen by the year ending March 2016 (fiscal 2016). In particular, the company hopes to double its international sales.
The company cited the environmental benefits of rail transportation as a driver of industry growth, which in turn is prompting Mistubishi Electric to give rail more emphasis in its corporate strategy. Mitsubishi Electric makes products that incorporate highly efficient power modules, mainly used in inverters to effectively control train speed, air conditioning and other equipment. It also supplies regenerative braking systems, which allow trains to utilize electricity generated by the braking of other trains, and other products that help railway transportation reduce impact on the environment and save energy.
As part of its efforts, the company intends to expand its overseas railway transportation systems business, mainly in North America and China, but also in Central and South America, Asia and other emerging markets. Moreover, it said it intends to pursue further cooperation with railcar manufacturers, enhance its own product lineup, and expand its electric railcar equipment maintenance business. The company also plans to take part in high-speed railway projects overseas.
In Japan, the company will try to maintain stable sales in its rolling stock systems sector, while promoting the development of next-generation railway system projects. The company also intends to expand its business in equipment used for monitoring control, accident prevention and other ground-based systems, as well as its environment-related businesses such as its electricity storage systems and photovoltaic systems for stations.