Yomiuri: Honda to Take 61% Stake in Astemo, Pursuing Next-Gen Vehicles

Dow Jones12-17 16:32

By Daisuke Narahashi / Yomiuri Shimbun Staff Writer

Honda Motor Co. announced Tuesday that it will acquire a majority stake in Astemo Ltd., a major Japanese auto parts maker.

Honda will buy a 21% stake from Hitachi Ltd. for 152.3 billion yen. The acquisition is scheduled to be completed during the April-June period in 2026 and overall will give Honda a 61% stake.

The purchase is aimed at accelerating next-generation vehicle development by bringing Astemo, which excels in autonomous driving technology and software development, under Honda's umbrella.

Astemo manufactures automotive components such as motors and inverters, and it supplies major automakers including Honda. In recent years, it has also focused on next-generation software-defined vehicles, whose functionality can be enhanced through software updates.

As the parent company, Honda will support Astemo's growth. It is aiming for an initial public offering for Astemo in the future.

Astemo was established in 2021 through the merger of four auto parts makers affiliated with Hitachi and Honda. It was initially a Hitachi subsidiary. In 2023, Honda increased its stake, establishing the current shareholder structure, with 40% of shares held by Honda, 40% by Hitachi and 20% by JIC Capital Ltd.

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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.

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December 17, 2025 03:32 ET (08:32 GMT)

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