Samvardhana Motherson secures 81% stake in Yachiyo’s 4W business

Samvardhana Motherson International Limited (SAMIL), through its fully owned subsidiary, SMRP B.V.’s SAHN B.V., has signed an agreement to secure an 81% stake in Yachiyo Industry Co. Ltd’s four-wheeler (4W) business.

This acquisition will result in an 81:19 strategic alliance between Motherson and Honda Motor, aimed at driving the company towards a robust and sustainable future, fully primed for next-generation products and technologies.

Yachiyo Industry Co., Ltd., a Honda Motor Co., Ltd. subsidiary, is a publicly listed company on the Tokyo Stock Exchange, encompassing 4W and two-wheeler (2W) businesses. Before Motherson’s acquisition of Yachiyo’s 4W division, the 2W business under Goshi Giken will be transferred to Honda Motor.

Yachiyo’s 4W segment has 13 manufacturing facilities and three R&D centres in eight countries, including the USA, Brazil, Mexico, China, Japan, Thailand, Indonesia, and India. In FY23, it reported revenues and EBITDA of approximately JPY 116 billion/EUR 824 million and JPY 13 billion/EUR 94 million, respectively, with the total equity value of the business standing at JPY 23 billion/EUR 145 million for a 100% stake.

As a strategic global supplier to Honda Motor, Yachiyo 4W fulfils nearly all of Honda’s sunroof and fuel tank requirements at each manufacturing location, demonstrating a strong partnership built upon decades of meeting Honda’s rigorous technical and quality standards.

The growth potential for sunroof systems is promising worldwide, with a projected increase in demand across all car segments. The transition to hybrid cars will ensure the continued use of plastic fuel tanks, while advancements in fuel cell powertrains align with the development of Type-IV hydrogen storage tanks.

With its extensive experience collaborating with global Original Equipment Manufacturers (OEMs) like Honda Motor, coupled with its advanced R&D capabilities, Yachiyo 4W is strategically positioned to cater to the evolving industry landscape and future mobility trends.

The company has also developed next-generation value-added products, including lighter plastic tailgates and Type-IV hydrogen storage tanks.

This acquisition will not only fortify Motherson’s standing as a preferred partner for Honda Motor but also enable further diversification in alignment with its 3CX10 strategy. The strategic alliance also presents opportunities for Motherson to offer these products to other OEMs worldwide.

Vivek Chaand Sehgal — Motherson Chairman said: “This acquisition is an important landmark for Motherson as we are honoured to be handpicked by Honda San for a global partnership.

“We will give our best to live up to the trust bestowed upon us by Honda San. These new product segments are in line with our increasing content per car strategy as well as our customer-centric approach.

“We believe this business will be highly synergistic with Motherson’s existing portfolio as we see ample opportunities to grow this new business globally by leveraging our global relationships with automotive OEMs. We are looking forward to the exciting times ahead.”

Established in 1953 and listed on the Tokyo Stock Exchange in 1994, Yachiyo’s 4W business, with a reported turnover of JPY 116 billion and an EBITDA of 11.4%, offers a broad product portfolio that includes sunroof systems, fuel tanks (both plastic and steel), and plastic products. Supplying core products primarily to Honda Motor and some other global OEMs, Yachiyo 4W employs over 3,200 employees across eight countries.