Japanese supplier Denso Corp. is expanding its software and vehicle navigation business in China to better tailor product development and sales to local demand.

Currently, the company's software development subsidiary in China, Denso Create Shanghai Inc., is run out of Japan. In April, the company will be renamed Denso Software Shanghai Co. and brought under control of the company's Chinese subsidiary, Denso (China) Investment Co.

Denso Software Shanghai will continue to develop automotive software, mainly for use in vehicle navigation systems. The company will build a new branch office in Xian.

It also plans to expand its payroll to 120 employees by 2012, from 70 today.

Asia and Oceania accounted for two-thirds of the Toyota-affiliated supplier's global operating income in the first nine months of the fiscal year ending March 31.