2030 Medium-to-Long-Term Strategy

1. Culture and Mindset Transformation

In addition to the culture and mindset transformation we started in 2019, and, in order to create an organization where all can make maximum use of their individuality and skills to challenge themselves, we are also promoting diversity, equity, and inclusion (DEI) and reforming the personnel system.

• HR System reform: Cultivating personnel who set high targets (management of challenge-based targets, evaluation system, personnel development) to take on new challenges and for their personal growth.
• Diversity, equity, and inclusion (DEI): Continuing to advocate for the respect of diverse ways of thinking and working, and to create a worker-friendly organizational culture and climate.
• Accelerating culture and mindset transformation: Continuing with projects to change each individual and the company through their own ideas and initiatives, and insights and awareness.

2. Process and Operation Transformation

We will standardize and systemized our effort to strengthen our operational capabilities, which have been promoted and have produced results under the 4 themes of “Development efficiency improvement”, “Design, Manufacturing, Procurement Alingment” , “SCM innovation” and “Manufacturing waste eliminating”. We will continue to evolve all work processes across the organization to make them a source of competitiveness.

Strengthening Supply Chain Management (SCM)

• In all our domestic and overseas bases, we are rolling out initiatives to halve the production lead times, which have been successfully implemented in advance at domestic model bases.
• We will evolve the supply chain work processes on a global scale, to strengthen our ability to respond to drastic changes in demand and supply.

Optimizing the Quality Management System (QMS)

• We will reflect in the QMS activities to improve areas such as making full use of existing equipment and the sharing of parts, which we have proceeded with in the lead project of aligning design, manufacturing and procurement, and roll out these activities in all projects. We will continue to streamline and evolve work processes across the organization.

Development innovation

• We will normalize in software development the initiatives to reduce development costs by improving development productivity, and also expand them into hardware development. We will also incorporate pioneering examples from the IT industry and other areas, and aim to establish the industry-leading development practices.

3. Strategy and Business Model Transformation

Contribute to the Evolution of cars

PAS will establish strong creative partnerships with customers by refining the value we provide to them, while also enhancing the competitiveness of its businesses.

• Cockpit Integrated Solutions：As the market shifts toward SDV^*1, the architecture of vehicles is evolving significantly, and there is progression toward the integration of the overall systems of vehicles into a HPC^*2. Leveraging our strength in IVI^*3, which hold top global market share, and CDC^*4, which possesses many related products and technologies, MHI will expand its contribution in the areas of SDV and integrated HPC.
  *1 Software-Defined Vehicle (SDV): A vehicle with functions and value that are defined by software.
  *2 High Performance Computer (HPC): A high performance in-vehicle computer.
  *3 n-Vehicle Infotainment (IVI): An integrated in-vehicle system that provides both information and entertainment.
  *4 Cockpit Domain Controller (CDC): The various functions of the cockpit are consolidated into this single electronic control unit.
• EV Solutions： As the acceleration of electric vehicles (EV), EV drivers are seeking even better ways to charge their vehicles. This is increasing the importance of high voltage and high output power conversion systems that can charge in a short time. With the strength of our expertise and achievement from being one of the first to work on in-vehicle chargers based on power electronics technologies, we will contribute to evolve power conversion systems and contribute to the proliferation of EV as a technology partner of car manufacturers.

Provide innovation values that centers on each person’s user experience

• With the proliferation of EV and automated driving, the added value of vehicles is shifting from driving performance to the value of the end-user experience (UX). By combining software and device modules, we will create in the area of cockpits new value in mobility experiences that are uniquely PAS.

Further evolve the value of User Experience Expand contribution area to life & living

We are aiming to create new service businesses designed to transform the mobility society.

• For industries where operational planning is difficult due to various restrictions, we provide fleet management services centered on "DRIVEBOSS," a business efficiency solution already being developed by our affiliated companies.
• We are applying the expertise of Panasonic Group companies, and collaborating with car manufacturers to co-create a new service platform that connects cars with daily life.

Environmental Contributions

With the introduction of energy saving and renewable energy, we have achieved zero CO₂ emissions at all our domestic and overseas bases. We will continue to lead the Group in realizing the Panasonic GREEN IMPACT^*1 goal.

• We will continue to lead the Panasonic Group in actively promoting the Group’s goal of “a reduction impact* of around 1% (≈ 300 million tons) ^*2 of current total global CO₂ emissions by 2050,” as outlined in the Panasonic GREEN IMPACT.
• As for Scope 1 and Scope 2, we will be open and honest in our energy-saving efforts that are focused on work sites, with the goal of reducing every year our total energy usage by 3% compared to the previous year. Also, we will reduce by 50% our external reliance rate of renewable energy by 2030.
• In Scope 3, we will promote the visualization of CO₂ emissions from all supply chains, and make our contributions in CO₂ reductions a source of competitiveness.

*1 For more information on Panasonic GREEN IMPACT, see here
*2 2019 Energy-derived CO₂ emissions 33.6 billion tons (Source: IEA) 300 million tons is calculated using 2020 emission factors

The 2030 Medium-to-Long-Term Strategy has been formulated based on three layers of transformations.
For more information on the three transformations, see here.