Isuzu Motors Deconsolidates Chinese Joint Venture Amid Market Shift

MT Newswires Live12-19 18:24

Isuzu Motors (TYO:7202) will change its Chinese joint venture, Isuzu (China) Engine, from a consolidated subsidiary to an equity-method affiliate in response to the accelerating electrification and structural transformation in China's powertrain market.

The move involves a 1.22% capital reduction at the venture, which will adjust Isuzu's shareholding from 50.61% to 50.00% while its partners, Qingling Motors Group and Qingling Motors, increase their stakes.

As part of the transaction, Isuzu will receive a special dividend of approximately 529.7 million yen or 26.5 million yuan, corresponding to the capital reduction, according to its bourse filing on Friday.

This change aims to establish a more flexible and jointly managed operational structure to adapt to the changing market environment.

The reclassification is scheduled for February 2026, and the joint venture will continue as an important production and sales base for engine components in Chongqing.

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