The Growth Story and Global Expansion of NipParts, an Automotive Parts Company

The history of Nippa Parts, an automotive parts manufacturer, dates back to the 1930s. At that time, the company, then known as 'Shibaura Spring Manufacturing,' produced springs for automotive suspensions and gradually expanded its scale.

In the 1940s, after World War II, Nippa Parts commenced operations at its Yokohama and Ina factories, keeping pace with post-war reconstruction efforts across Japan. Subsequently, in the 1950s, it expanded its business by merging with Daido Steel and building a new seat factory.

Entering the 1960s, Nippa Parts accelerated its foray into overseas markets. It initially expanded into the US market and subsequently established joint ventures in Thailand and Taiwan. In the 1970s, it established joint ventures in Brazil and again in the US, and in the 1980s, it relocated its headquarters to Yokohama, following its ventures in the US and Spain.

In the 1990s, Nippa Parts expanded its business to Thailand, India, and Brazil, and in the 2000s, it extended its reach into Europe, establishing joint ventures in India and Indonesia. By the 2010s, it had grown into a global enterprise, establishing joint ventures in India, the Philippines, Mexico, and Hungary, among other locations.

In this way, Nippa Parts has consistently expanded its production facilities since the post-war reconstruction period, keeping pace with the growth of the automotive market. Through the acquisition of competitors and industry restructuring, it has grown to become the industry leader in scale, and it has also actively pursued a global expansion strategy through joint ventures.

Its expansion into the US, European, and Asian markets was particularly notable. It established new factories or formed joint ventures with local companies in these regions, where the automotive industry was experiencing rapid growth at the time. For instance, it initiated a joint venture with Rockwell of the US for seat manufacturing, and in Thailand, it capitalized on the favorable conditions of an export-oriented economy to establish a factory, hire local workers, and cultivate the market.

Nippa Parts also boldly ventured into new businesses beyond automotive parts. Its foray into bowling alleys and taxi operations stemmed from the belief that relying solely on automotive parts would not ensure future success. It diversified its business into precision parts and non-automotive sectors, launching new ventures in various fields such as pipe hangers, mechanical automated parking systems, chemical products, electronic components, bonding and ceramics, and security.

Nippa Parts, a global enterprise born from exceptional passion and a spirit of challenge, has experienced several landmark events throughout its operations. Among them is the noteworthy fact that over half of its past presidents have been from a technical background. The president who took office in 2017, Rikuji Saitomo, was the first-ever president from a technical background in the industry.

Nippa Parts' culture and identity also encompass a small but meaningful episode. President Saitomo reportedly experienced a sudden order from the company to leave the workplace during his younger years. This experience instilled in him a business philosophy of "becoming a company that consistently generates profits."

The company's threat to the employees' livelihoods due to declining profitability fueled his entrepreneurial spirit. He is known for his leadership style, which involves listening to employees' ideas and paying attention to even the smallest details.