Auto components maker Samvardhana Motherson International Limited mentioned that it would acquire an 81% stake in the four-wheeler business of Yachiyo Industry, a Honda Motor subsidiary.

The company got into a partnership with Honda Motor wherein it will form an 81:19 strategic partnership where both partners will drive the business towards a robust and sustainable future and be fully prepared for next-generation products and technologies, Samvardhana Motherson International Ltd (SMIL) mentioned in a statement.

Yachiyo Industry is a publicly listed firm on the Tokyo Stock Exchange. It is a secondary of Honda Motor and has four-wheeler (4W) and two-wheeler (2W) businesses.

In a regulatory filing, the company informed that the acquisition cost is at an “equity value of JPY 22.9 billion for 100% stake subject to any modifications about the above transaction.” The statement said that Yachiyo 4W supports Honda Motor in all of its sunroof and fuel tank necessities at each manufacturing location.

Sunroof systems hold higher growth potential globally amid an increase in demand and are predictable to witness a surge in application across all car segments.

Further, the evolution to a hybrid will endure seeing the use of plastic fuel tanks. The trend of fuel cell powertrains is also associated with Type-IV hydrogen storage tanks under progressive stages of development.

Yachiyo 4W business hires around 3,200 employees in its 13 industrial facilities and three R&D centres across 8 countries counting the US, Brazil, Mexico, China, Japan, Thailand, Indonesia, and India. It had conveyed a revenue of JPY 116 billion in FY23.

Yachiyo 4W has industrialised multiple value-added next-generation goods like lighter plastic tailgates and type-IV hydrogen storage tanks.