(Updated October 2026. USD figures are converted at USD/JPY = 150 for reference.)
Japan’s automotive parts industry is adjusting to CASE (connected, autonomous, shared and electric) technologies and software-defined vehicles (SDV) while the capital ties within its supplier groups (keiretsu) are being reviewed. Over the past few years, automotive parts and related materials subsidiaries and affiliates of Hitachi, Toshiba, THK and Furukawa Electric have moved to an automaker, to other parts makers and to private equity funds. Between 2025 and 2026, founding families and owner-managers sold their parts companies to listed Japanese parts makers and to a listed succession platform (a listed company that acquires manufacturers facing succession issues). Foreign acquirers are also active: India’s Samvardhana Motherson group has acquired majority stakes in two Honda-affiliated suppliers, and a US fund and a Taiwanese component maker have taken control of Japanese automotive and adjacent component businesses.
This article is written for corporate development and international business development teams at foreign companies that see Japan as an acquisition market, a source of partners, or a source of acquirers for their own businesses. It reviews Japan automotive parts M&A through the market structure, the industry landscape, domestic consolidation, foreign capital in Japanese automotive parts (Out-In, or inbound, transactions), Japanese parts and tire majors’ acquisitions abroad, the industry-specific factors acquirers examine, and the implications for overseas acquirers.
1. Market Structure — Slightly Lower Shipments and Growth in Electrified-Vehicle Parts
Market size
According to the Japan Auto Parts Industries Association (JAPIA), the 293 member companies that responded to its FY2024 shipment survey shipped about ¥20.7tn (~USD 138bn) of automotive parts, 98.3% of the prior year. Domestic shipments accounted for about ¥15.5tn (~USD 104bn) and overseas shipments for about ¥5.2tn (~USD 35bn), or 25.0%. By customer type, original-equipment supply to automakers represented 70.9% of shipments, aftermarket and repair 8.2%, and supply to other parts makers 20.9% (JAPIA, FY2024 Automotive Parts Shipment Survey).
In the Japan Automobile Manufacturers Association’s compilation of government statistics (including the Economic Structure Survey), Japan’s automotive manufacturing sector shipped ¥72.9tn (~USD 486bn) in 2024, 19.1% of total manufacturing shipments, of which parts and accessories accounted for ¥41.7tn (~USD 278bn). The JAPIA survey covers only responding member companies, so the scope of the two figures differs. Employment in automotive-related industries was 5.57 million in 2025, 8.0% of Japan’s total employment (Japan Automobile Manufacturers Association, The Motor Industry of Japan 2026). Domestic production of four-wheel vehicles was 8,234,645 units in 2024 (91.5% of the prior year) and 8,410,334 units in 2025 (102.1%).
A 2021 JAPIA paper based on the Ministry of Economy, Trade and Industry’s Census of Manufacture showed that small and medium-sized enterprises with 300 or fewer employees accounted for 93.8% of the 6,316 establishments in automotive parts manufacturing, 40.4% of employees and 22.7% of shipments (JAPIA, Issues and Requests Toward Carbon Neutrality).
Product categories
Customers, approval processes and exposure to electrification differ widely by product category. In M&A, the categories in which a company holds positions shape both the set of likely acquirers and the way they assess the business.
| JAPIA category | Examples | FY2024 shipments | % of FY2023 |
|---|---|---|---|
| Body parts | Seats, door and body components, bumpers | ¥4,360bn (~USD 29.1bn) | 88.7% |
| Drive, transmission and steering parts | Clutches, transmissions, steering | ¥3,523bn (~USD 23.5bn) | 84.1% |
| Electrical and electronic parts (body) | Headlamps and signal lamps, meters | ¥3,317bn (~USD 22.1bn) | 100.1% |
| Electrical and electronic parts (engine) | Ignition, starting and charging, control units | ¥2,876bn (~USD 19.2bn) | 100.8% |
| Engine parts | Pistons, fuel, intake and exhaust components | ¥2,600bn (~USD 17.3bn) | 93.7% |
| Parts for electrified vehicles (HV, FCV, EV) | Motors, inverters and others | ¥1,297bn (~USD 8.6bn) | 115.3% |
| Information-related parts | Navigation and others | ¥812bn (~USD 5.4bn) | 105.5% |
| Suspension and braking parts | Suspension, brakes | ¥753bn (~USD 5.0bn) | 86.6% |
| Accessories | Accessories and supplies | ¥192bn (~USD 1.3bn) | 74.0% |
Category figures aggregate only the companies that reported shipments by category, so their total (¥19.7tn) differs from the overall figure, and the category comparisons with FY2023 reflect differences in the set of respondents, so their level differs from the overall 98.3%. In FY2024, parts for electrified vehicles grew to 115.3% of the prior year and information-related parts to 105.5%, while drive, transmission and steering parts fell to 84.1% and body parts to 88.7%.
Five drivers of consolidation
- Electrification — The Japanese government has set a target of 100% electrified vehicles (battery electric, hybrid, plug-in hybrid and fuel cell vehicles) in new passenger car sales by 2035 (Agency for Natural Resources and Energy). In JAPIA’s FY2024 survey, shipments of parts for electrified vehicles grew to 115.3% of the prior year. Engine parts fell to 93.7%, but most categories declined in a year of lower domestic production, so this figure alone does not measure the effect of electrification. At the same time, Denso canceled the planned sale of its spark plug and exhaust sensor business to Niterra in October 2026, citing demand for diverse powertrains that is lasting longer than expected (Section 3). Expectations about the scale and duration of demand for internal combustion engine (ICE) parts are a factor in portfolio decisions.
- Software-defined vehicles (SDV) — The Ministry of Economy, Trade and Industry (METI) adopted its Mobility DX Strategy in May 2024 (updated in June 2025), with a target of a 30% share for Japanese automakers in global SDV sales in 2030 and 2035. Honda cited the need to lead, as parent company, the development of AI and software capabilities for the SDV era as its reason for acquiring additional shares in Astemo from Hitachi (Section 3).
- US tariffs and fair-trade rules — In 2025 the United States imposed a 25% additional tariff under Section 232 on imported vehicles (from April 3) and parts (from May 3 at the latest). Under the US-Japan agreement, vehicles and parts from Japan have been subject to a combined tariff of 15%, including the standard rate, since September 16, 2025. In Japan, the Act on Ensuring Fair Transactions with Small and Medium-Sized Contractors, which replaced the Subcontract Act, took effect on January 1, 2026. It prohibits setting prices unilaterally without responding to a contractor’s request for price consultation and prohibits payment by promissory notes, and it adds an employee-count threshold (300 employees for manufacturing contracts) to determine coverage. Tariffs add cost pressure, while the new act pushes for fairer trading terms; both bear on whether a supplier can pass costs through to prices and negotiate terms at its own scale.
- Review of keiretsu shareholdings and portfolio decisions by major groups — Within the Toyota group, Denso announced in 2023 a policy to reduce its strategic shareholdings and sold ¥438.5bn (~USD 2.9bn) of such holdings in FY2024. Toyota Industries was taken private through a tender offer by a company established by Toyota Fudosan, which succeeded in March 2026, and was delisted on June 1, 2026. Sumitomo Electric Industries took its listed subsidiary Sumitomo Riko private through a tender offer and a squeeze-out, and Sumitomo Riko was delisted on January 29, 2026. These are intra-group reorganizations and are not counted among the cases in this article. Transfers outside the group include, among others, those by Hitachi, Toshiba, THK, Furukawa Electric, Denso and Honda (Sections 3 and 4).
- Business succession — Japan’s Small and Medium Enterprise Agency estimated that by 2025 about 2.45 million owners of small and medium-sized enterprises would be over 70 and that about half of them (1.27 million) would have no designated successor (SME Agency, Current Analysis of Business Succession and M&A). With 2025 now past, recent examples in the automotive parts industry include the following. The owner-president of Surtech Kariya, a surface-treatment group in Kariya, Aichi, sold all of its shares to a listed succession platform, and the founding family and individual shareholders of switch maker Toyo Denso sold their shares to Nippon Seiki (Section 3).
2. Industry Landscape
Major Tier 1 suppliers (direct suppliers to automakers)
| Company | Headquarters | Consolidated revenue | Ownership and recent moves |
|---|---|---|---|
| Denso | Kariya, Aichi | ¥7,540bn (~USD 50.3bn), FY2026/3 | Toyota Motor holds 22.24%. Reducing strategic shareholdings. Agreed to sell its spark plug and exhaust sensor business in 2025; canceled in October 2026. Agreed to sell its HUD business in August 2026 |
| Aisin | Kariya, Aichi | ¥5,118bn (~USD 34.1bn), FY2026/3 | Toyota Motor holds 22.34% |
| Sumitomo Electric Industries | Chuo-ku, Osaka | ¥5,110bn (~USD 34.1bn), FY2026/3, of which automotive ¥2,937bn (~USD 19.6bn) | No parent company. Took Sumitomo Riko private in January 2026 |
| Astemo (non-listed) | Tokyo | ¥2,187bn (~USD 14.6bn), FY2025/3, IFRS | Since October 1, 2026: Honda 61.0%, JICC-01 (a fund managed by JIC Capital) 20.0%, Hitachi 19.0% |
| JTEKT | Kariya, Aichi | ¥1,925bn (~USD 12.8bn), FY2026/3 | Toyota Motor holds 24.3% |
| Toyoda Gosei | Kiyosu, Aichi | ¥1,147bn (~USD 7.6bn), FY2026/3 | Toyota Motor holds 21.71% |
| Koito Manufacturing | Minato-ku, Tokyo | ¥948bn (~USD 6.3bn), FY2026/3 | Toyota Motor holds about 18% (calculated from share count). Acquired US LiDAR company Cepton in 2025 |
Toyota Industries (FY2026/3 consolidated revenue ¥4,370bn (~USD 29.1bn), of which automotive ¥1,190bn (~USD 7.9bn)) was delisted in June 2026. Toyota Motor holds 32.45% of the voting rights in Toyota Boshoku (FY2026/3 revenue ¥2,037bn (~USD 13.6bn)). Wire harness maker Yazaki is non-listed.
Listed mid-size and specialist suppliers
| Company | Consolidated revenue | Major shareholders | Moves since 2024 |
|---|---|---|---|
| Musashi Seimitsu Industry | ¥347bn (~USD 2.3bn), FY2026/3 | Honda holds about 25% | — |
| Unipres | ¥322bn (~USD 2.1bn), FY2026/3 | Nippon Steel 15.0%, Marubeni-Itochu Steel 9.8% | — |
| Exedy | ¥304bn (~USD 2.0bn), FY2026/3 | — | In May 2024, the Aisin group sold its entire 34.55% voting stake through a secondary offering |
| FCC | ¥261bn (~USD 1.7bn), FY2026/3, IFRS | Honda holds 22.5% | In May–June 2026, repurchased 1 million shares from the founding family’s asset management company through a self-tender offer |
Of the listed companies in the two tables above, six (Denso, Aisin, JTEKT, Toyoda Gosei, Musashi Seimitsu and FCC) have an automaker holding 20% or more. The treatment of these stakes directly affects the capital decisions of the suppliers. Honda has transferred majority stakes in Yachiyo Industry (announced in 2023) and Yutaka Giken (2026) to the Motherson group (Section 4).
Parts companies within major groups
Japan’s automakers and its electronics, chemicals and materials groups have long held automotive parts subsidiaries and affiliates. Astemo was formed in 2021 by integrating Hitachi Automotive Systems with the Honda-affiliated Keihin, Showa and Nissin Kogyo, and Hitachi’s stake has fallen from 66.6% to 40% (2023) and 19% (2026). Toshiba sold Toshiba Materials, a maker of silicon nitride balls and other ceramics, to Niterra; Panasonic Holdings sold 80% of in-vehicle electronics maker Panasonic Automotive Systems to a fund managed by Apollo Global Management; and lead-acid battery maker Furukawa Battery was taken private by a fund managed by Advantage Partners, with its parent Furukawa Electric selling its entire stake back to Furukawa Battery through a share repurchase. Sawafuji Electric, an electrical components maker in which Hino Motors, Denso and Honda together held about 45.6%, went through a take-private process by a fund for which Sparx Group serves as general partner, and published a notice of its delisting on May 14, 2026.
Owner-run suppliers
Many of Japan’s non-listed parts makers are owner-run. Their capital decisions vary. The owner-president of Surtech Kariya sold all of its shares to Serendip Holdings, and Toyo Denso’s founder Kiyoshi Koide and his asset management company (together 33.94%), individual shareholders and Honda, among others, sold their shares to Nippon Seiki. Among listed companies, FCC repurchased shares from its founding family’s asset management company. Non-listed companies disclose limited information, and identifying them requires research beyond public databases.
Regional concentration (Chubu and Kansai)
Companies covered in this article headquartered in Aichi or Shizuoka prefectures include Denso, Aisin and JTEKT (all Kariya, Aichi), Toyoda Gosei (Kiyosu), Serendip Holdings (Nagoya), Surtech Kariya (Kariya), Musashi Seimitsu (Toyohashi), FCC (Hamamatsu) and THK Rhythm (Hamamatsu). In Kansai, Sumitomo Electric Industries (Chuo-ku, Osaka) and TOYO H&I (Osaka), which sold its seating and interior business to Tachi-S in 2026, are headquartered.
3. Domestic Consolidation — Carve-Outs From Major Groups and Owner Exits
Case 1: Honda and Astemo (completed October 2026) — An automaker acquires an electronics major’s stake
Astemo was formed in 2021 by integrating Hitachi Automotive Systems with Keihin, Showa and Nissin Kogyo. In October 2023, a fund managed by JIC Capital (JICC-01) joined as a shareholder, and the ownership became Hitachi 40%, Honda 40% and JICC-01 20%. In December 2025, Honda agreed with Hitachi to acquire about 21% of Astemo (223,605 shares) for ¥152.3bn (~USD 1.02bn) and make Astemo a consolidated subsidiary. The closing, originally planned for the first quarter of the fiscal year ending March 2027, was postponed in June 2026 to the end of the third quarter of that fiscal year because regulatory approvals in some countries were still pending. The transfer was completed on October 1, 2026, and ownership is now Honda 61.0%, JICC-01 20.0% and Hitachi 19.0%.
Honda stated that it would lead, as parent company, Astemo’s transformation to build a structure for developing AI and software for the SDV era with high efficiency and speed, and would lead Astemo’s growth as a global supplier with an IPO in view. Hitachi stated that it would use the proceeds for growth in line with its capital allocation policy. Astemo reported revenue of ¥2,187bn (~USD 14.6bn) and operating profit of ¥67.4bn (~USD 449mn) for the fiscal year ended March 2025.
This transaction shows that (i) an electronics major reduced its stake in a large parts company in stages, and the automaker that is its customer became the parent, (ii) the acquirer cited the building of software development capability, rather than product complementarity, as its purpose, and (iii) regulatory approvals in several countries delayed completion beyond the original schedule.
Case 2: Niterra and Toshiba Materials (2025) — A parts maker acquires an electronics major’s materials subsidiary
In November 2024, Niterra (Nippon Tokushu Togyo in its Japanese legal name), whose products include spark plugs, agreed to acquire all shares of Toshiba Materials (Yokohama) from Toshiba, and completed the acquisition on June 2, 2025, renaming the company Niterra Materials. The announced price was about ¥150bn (~USD 1.0bn) including net interest-bearing debt, before adjustment. Toshiba Materials reported revenue of ¥34.5bn (~USD 230mn) and operating profit of ¥5.5bn (~USD 37mn) for the fiscal year ended March 2024.
Niterra cited the acquisition of Toshiba Materials’ technology and customer base in silicon nitride balls and heat-dissipating substrates, and synergies with its new business areas, including bearing balls for EV motors. Toshiba described Niterra as the “best partner.” In its merger review, the Japan Fair Trade Commission found that Toshiba Materials held about 75% and Niterra about 25% of the domestic market for silicon nitride bearing ball blanks (FY2023).
This transaction shows that (i) an electronics major sold a materials subsidiary adjacent to automotive parts to a parts maker active in the same material, (ii) an acquirer with ICE-related products such as spark plugs acquired a material whose applications expand with electrification, and (iii) the combination of the two leading domestic suppliers of this material went through merger review and was completed.
Case 3: Denso, Niterra and Nippon Seiki (2025–2026) — A Tier 1 supplier’s canceled and pending divestitures
In September 2025, Denso agreed to sell its spark plug and exhaust sensor business to Niterra for ¥180.6bn (~USD 1.2bn), the price applicable to a closing on March 31, 2026, to be reduced according to the actual closing date. Denso cited the concentration of resources on electrification and hydrogen, and Niterra the integration of sales channels and production to ensure a stable supply of ICE products. The transfer had not been executed by October 2026, and on October 2, 2026 the two companies agreed to cancel it. Denso stated that demand for diverse powertrains is lasting longer than expected and that continuing the business is optimal.
Separately, in August 2026 Denso agreed to sell its head-up display (HUD, a device that projects information onto the windshield) business to Nippon Seiki. The transfer covers production equipment and intellectual property and excludes personnel, land and buildings. Nippon Seiki cited the growth and improved profitability of its HUD business and the optimization of production and development, and closing is scheduled for February 26, 2027.
These transactions show that (i) a Tier 1 supplier decided to transfer an ICE business and an HMI (human-machine interface, such as switches and displays) business to competitors making the same products, (ii) a change in the demand outlook for ICE parts led to the cancellation of an agreed divestiture, and (iii) business transfers can be limited to equipment and intellectual property, excluding personnel and real estate.
Case 4: Advantage Partners and THK’s automotive parts business (completed June 2026) — A fund acquires a listed manufacturer’s non-core business
In February 2026, THK, whose main business is linear motion systems, decided to transfer the shares and loan receivables of five consolidated automotive parts subsidiaries to AP87, a company indirectly owned by a fund managed by Advantage Partners, and completed the transfer on June 1, 2026. The five companies were TRA Holdings, which owns THK Rhythm (Hamamatsu) and subsidiaries in North America, Mexico, China and Thailand, and four subsidiaries in Canada, the Czech Republic, Germany and the US state of Michigan. The price was not disclosed under confidentiality obligations. THK stated that it had concluded, after examining its cost of capital and return on invested capital (ROIC), that a transfer was appropriate, and recorded a business restructuring loss of ¥81.6bn (~USD 544mn) for the fiscal year ended December 2025.
This transaction shows that (i) a listed manufacturer outside the core automotive parts industry sold its automotive parts business, including domestic and overseas sites, as a package to a fund, and (ii) the seller explained the sale in terms of cost of capital and ROIC.
Case 5: Advantage Partners and Furukawa Battery (2025) — A fund takes a listed subsidiary private
AP78, a company owned by a fund managed by Advantage Partners, announced a planned tender offer for Furukawa Battery (automotive and industrial lead-acid batteries) in July 2024 and, after competition clearances, conducted it in August and September 2025 at ¥1,400 (~USD 9.33) per share. The parent, Furukawa Electric, did not tender its 57.30% stake and instead sold all of it to Furukawa Battery through a share repurchase at ¥994 per share. Furukawa Battery was delisted on December 22, 2025, and AP78 became the 100% parent on December 24.
The acquirer cited expected benefits from combining Furukawa Battery with Energywith, a battery maker that Advantage Partners and Tokyo Century acquired in 2021: product complementarity, joint development of next-generation batteries, joint procurement of lead and shared logistics.
This transaction shows that (i) a listed subsidiary of a major group moved to a fund that already owns a competitor, ending a parent-subsidiary listing, (ii) the fund expects procurement, logistics and development benefits from combining the two companies, and (iii) the price and method of sale differed between the parent and other shareholders.
Case 6: Nippon Seiki and Toyo Denso (completed October 2026) — A listed parts maker acquires an owner-run supplier
In April 2026, Nippon Seiki, a maker of instrument clusters and HUDs, agreed to acquire all shares of non-listed Toyo Denso, a maker of switches and HMI products for cars and motorcycles, and completed the acquisition on October 1, 2026. The shareholders included founder Kiyoshi Koide and his asset management company (together 33.94%), three individual shareholders (21.85%), Honda (14.89%) and the employee shareholding association (5.13%). The share price was ¥49.85bn (~USD 332mn), funded entirely by borrowings. Toyo Denso reported consolidated revenue of ¥100.0bn (~USD 667mn), operating profit of ¥2.53bn (~USD 17mn) and net income of ¥2.70bn (~USD 18mn) for the fiscal year ended March 2025.
Nippon Seiki cited the expansion of its product portfolio (including motorcycles), HMI solutions combining instruments and HUDs with switches, and cooperation in joint purchasing, design and overseas production. Together with the HUD business from Denso (Case 3), Nippon Seiki agreed to two acquisitions in the HMI field in 2026.
This transaction shows that (i) a listed parts maker with adjacent products acquired an owner-run company in which the founding family and individuals held a majority, (ii) an automaker customer took part in the sale as a shareholder, and (iii) the acquirer expects benefits in joint purchasing and overseas production in addition to product complementarity.
Case 7: Serendip Holdings and Surtech Kariya (2025) — An owner sells all shares to a succession platform
On July 1, 2025, Serendip Holdings (Nagoya), a listed company specializing in succession-driven M&A of manufacturers, acquired all shares of Surtech Kariya (Kariya, Aichi) from its president. Surtech Kariya is a group of 10 companies providing functional plating and surface treatment for engine, brake and air-conditioning components. Serendip’s disclosure put its revenue at ¥21.6bn (~USD 144mn) and operating profit at ¥1.1bn (~USD 7mn). Serendip described the deal as the largest M&A since its founding. The seller used part of the proceeds to subscribe for 62,100 of Serendip’s treasury shares (about ¥200mn).
Since 2023, Serendip has acquired a series of automotive parts companies, including prototype developer Apex, stamping and welding company Iwai, and the Excel group, a blow-molder of automotive ducts. Its consolidated revenue for the fiscal year ended March 2026 was ¥51.2bn (~USD 341mn), roughly double the prior year (up 103.6%).
This transaction shows that (i) the buyer of an owner-held parts maker was a listed succession platform rather than another parts maker, and (ii) the owner-seller reinvested part of the proceeds in the acquirer’s shares and became its shareholder.
4. Foreign Capital in Japanese Automotive Parts — Out-In Transactions
For overseas groups, these cases are examples of how foreign companies have entered Japan’s automotive parts industry: through acquisitions of keiretsu suppliers released by automakers, carve-outs from electronics majors, contested tender offers and, earlier, majority stakes in listed suppliers. Case 10 involves electronic components adjacent to automotive parts, and Cases 11 and 12 are older transactions; both are noted as such.
Case 8: Motherson, Yachiyo Industry and Yutaka Giken (2023–2026) — A foreign supplier acquires Honda-affiliated suppliers
India’s Samvardhana Motherson group has acquired Honda-affiliated suppliers in succession. In July 2023, a structure was announced under which Honda would make Yachiyo Industry, already its subsidiary, wholly owned through a tender offer and related steps, transfer 81% of the voting rights to the Motherson group and retain 19%. Honda cited the choice of Motherson, a global supplier of plastic interior and exterior parts, as a strategic partner to expand Yachiyo’s sales channels and plastic products business.
In 2026, a Motherson group company launched a tender offer for Yutaka Giken (69.66% owned by Honda) at ¥3,024 (~USD 20.16) per share. Honda did not tender, and after a share consolidation and a repurchase of part of Honda’s shares, the structure was set at Motherson 81% and Honda 19%. Yutaka Giken was delisted in June 2026, joined the Motherson group in July and was renamed Motherson Yutaka Giken in August. The acquirer cited sales channels in emerging markets, especially India, business with global automakers and diversification into non-automotive fields as aims of the combination, and stated that it did not plan major changes to the management structure and would not change employees’ terms of employment adversely for the time being.
This transaction shows that (i) an automaker transferred majority stakes in its keiretsu suppliers to a foreign supplier while retaining a minority stake, (ii) the foreign acquirer cited expanded sales channels and business with automakers as aims, and (iii) the acquirer stated that it did not plan major changes to management or adverse changes to employment terms for the time being.
Case 9: Apollo and Panasonic Automotive Systems (completed December 2024) — A US fund acquires an electronics major’s automotive business
In March 2024, Panasonic Holdings agreed with funds managed by Apollo Global Management to transfer 80% of Panasonic Automotive Systems, its in-vehicle electronics business, and retain 20% as an equity-method affiliate. The transaction was based on an enterprise value of ¥311bn (~USD 2.07bn), subject to adjustment at closing, and was completed on December 2, 2024. Panasonic Automotive Systems reported revenue of ¥1,297.5bn (~USD 8.65bn) for the fiscal year ended March 2023. The parties cited accelerated growth using Apollo’s resources and experience, stronger cockpit software development and portfolio optimization. The president remained in office after closing, and the company announced in December 2025 that it would change its name to Mobitera on April 1, 2027.
This transaction shows that (i) a Japanese electronics major sold a majority of its automotive business to a foreign fund while retaining a minority stake, and (ii) the business continued under its existing management.
Case 10: YAGEO and Shibaura Electronics (2025) — A contested tender offer for a component maker
In February 2025, Taiwan’s YAGEO proposed to acquire Shibaura Electronics, a maker of thermistors and sensors, at ¥4,300 per share, and raised its price in stages to a final ¥7,130 (~USD 47.5). MinebeaMitsumi launched a competing tender offer at ¥6,200, announced in August that it would not raise its price, and its offer failed to reach the minimum. YAGEO’s tender offer, which ran from May to October 2025, gave it 88.32% of the voting rights, and Shibaura Electronics was delisted on January 13, 2026 after a share consolidation. YAGEO cited the strengthening of its sensor portfolio, opportunities in automotive, industrial and AI data center applications, and global sales of NTC thermistors, and stated that it would respect the target’s independence and keep its brand.
This transaction, in electronic components adjacent to automotive parts, shows that (i) a foreign acquirer prevailed over a Japanese strategic bidder through repeated price increases, and (ii) the acquirer stated that it would keep the target’s brand and respect its independence.
Case 11: Valeo, Ichikoh Industries, Faurecia and Clarion (2017–2019) — European suppliers take control of listed Japanese suppliers
Earlier Out-In transactions by European suppliers followed a different route. France’s Valeo, which already held 31.58% of lamp maker Ichikoh Industries, raised its stake to 55.08% through a tender offer at ¥408 per share that settled in January 2017. Valeo cited stronger relationships with Japanese customers and expansion in Japan and Southeast Asia, and Ichikoh remained listed. In October 2018, France’s Faurecia (now Forvia) announced a tender offer for in-vehicle electronics maker Clarion at ¥2,500 per share, about ¥141bn (~EUR 1.1bn) for 100%, with Hitachi agreeing to tender its 63.8% stake. Faurecia put the price at 5.7 times Clarion’s EBITDA for the fiscal year ended March 2018 including expected synergies of about EUR 90mn by 2022, and cited cockpit electronics and software integration, image processing, sensing and HMI technology, and expanded business with Japanese automakers. It planned to form a business group headquartered in Japan.
These transactions show that (i) European suppliers gained control of listed Japanese suppliers by raising an existing stake or by buying a parent company’s stake, and (ii) the acquirers cited access to Japanese automakers as a main reason.
Case 12: KKR, Calsonic Kansei and Marelli (2017–2026) — A fund-led carve-out from an automaker and its restructuring
In November 2016, Nissan agreed to sell its approximately 41% stake in Calsonic Kansei to CK Holdings, a company owned by KKR, through a tender offer at ¥1,860 per share, a premium of 109.3% to the 12-month volume-weighted average price. Nissan cited strengthening the competitiveness of an important partner, and KKR cited support for growth through its international network and industry knowledge. KKR completed the tender offer in March 2017, and in 2019 Calsonic Kansei was combined with Magneti Marelli to form Marelli. Marelli restructured its bank debt through a simplified rehabilitation approved by the Tokyo District Court in 2022, with KKR providing new equity, and in June 2025 filed for Chapter 11 in Delaware with USD 1.1bn of debtor-in-possession financing. It filed a plan of reorganization in August 2026.
These transactions show that (i) automakers’ sales of keiretsu suppliers to foreign funds have a history of nearly a decade, and (ii) a fund-led combination of a Japanese supplier with a foreign supplier later required restructuring in both Japan and the United States. Another restructuring-driven example is the 2018 acquisition of substantially all of Takata’s assets for USD 1.588bn by Key Safety Systems, backed by China’s Joyson Electronics, through bankruptcy proceedings in Japan and the United States; the combined company became Joyson Safety Systems.
5. Japanese Automotive Parts and Tire Majors Abroad — In-Out Transactions
For overseas companies, Japanese parts and tire makers are potential acquirers of their businesses and potential partners. Their recent transactions show what they buy, on what criteria and at what price levels. In our research, overseas acquisitions with disclosed prices by makers whose main business is parts for automakers were limited, and the large transactions with disclosed prices were concentrated among tire makers. The cases below cover a technology acquisition (Case 13) and transactions with disclosed price levels (Cases 14 and 15). They show that Japanese majors pay for technology, adjacent segments such as commercial tires, and brands abroad.
Case 13: Koito Manufacturing and Cepton (completed January 2025) — Full acquisition of a minority-held technology company
Koito began joint development with US-based Cepton (LiDAR, a laser-based distance sensor, for automotive and infrastructure applications; listed on Nasdaq) in 2018 and subscribed for USD 100mn of convertible preferred stock in January 2023. In July 2024, it agreed to acquire the remaining shares for USD 3.17 per share in cash, a premium of about 25.3% to the prior closing price, and completed the acquisition and delisting on January 7, 2025. Cepton reported 2023 revenue of USD 13.1mn and adjusted EBITDA of minus USD 41.2mn, and a US automaker had canceled a series-production award in December 2023.
Koito cited the combination of LiDAR with lamps to address advanced driver assistance and automated driving, and the expansion of its customer base beyond automakers to industrial, construction, agricultural and infrastructure applications.
This transaction shows that (i) a lamp major took full control of a loss-making technology company after joint development and a minority investment, and (ii) the acquisition criterion was a sensor technology to combine with its own products rather than current earnings.
Case 14: Yokohama Rubber, Trelleborg Wheel Systems and Goodyear’s OTR business (2023 and 2025) — Successive carve-outs from Western corporates
In May 2023, Yokohama Rubber acquired Trelleborg Wheel Systems, a maker of agricultural and industrial tires, from Sweden’s Trelleborg. The enterprise value at completion was EUR 2,074mn, about 9.5 times 2022 adjusted EBITDA (EUR 218mn), and 2022 revenue was EUR 1,249mn. Yokohama Rubber cited the expansion of its commercial (non-consumer) tire business, which accounts for about half of the tire market, and a shift in its consumer-to-commercial mix from 2:1 to 1:1. The former president remained in office after the acquisition.
In February 2025, Yokohama Rubber acquired Goodyear’s off-the-road (OTR) tire business for mining and construction vehicles for USD 905mn. The business reported 2023 revenue of USD 674mn and adjusted EBITDA of USD 130mn. Goodyear sold it as part of its restructuring and stated that the proceeds would reduce its leverage.
These transactions show that (i) a Japanese tire major acquired businesses carved out by Western corporates in succession, (ii) the price level was about 9.5 times adjusted EBITDA for Trelleborg Wheel Systems as disclosed, and about 7.0 times for the OTR business on a reference basis (price divided by 2023 adjusted EBITDA), and (iii) the targets were off-highway tires for agriculture, mining and construction rather than tires for new passenger cars.
Case 15: Sumitomo Rubber Industries and the DUNLOP brand (completed May 2025) — Acquiring trademarks rather than a business
In May 2025, Sumitomo Rubber Industries acquired from Goodyear the DUNLOP trademark rights for four-wheel tires in Europe, North America and Oceania, among other rights, for USD 526mn. It also agreed to pay USD 105mn for support in transferring European customers and about USD 104mn for initial inventory. Sumitomo Rubber cited the value of differentiated products based on its own technology, a higher premium mix and the positioning of DUNLOP at the core of its global brand strategy.
This transaction shows that (i) a Japanese tire maker entered overseas markets by acquiring brand rights rather than companies or plants, and (ii) the seller was again Goodyear, showing that restructuring by overseas corporates creates acquisition opportunities for Japanese companies.
6. Industry-Specific Factors Examined by Acquirers
In acquisitions of Japanese automotive parts makers, acquirers examine industry-specific factors in addition to financials. Based on the reasons and synergies disclosed by the acquirers in the cases above, these factors fall into three groups.
- Products and technology — Which powertrains (ICE, hybrid, battery electric) and product categories the revenue depends on. Technologies whose applications expand with electrification and driver assistance have been the purpose of acquisitions in their own right, as with silicon nitride balls (Case 2) and LiDAR (Case 13). Adjacent products are another reason: in Case 6 a switch and HMI maker moved to an instrument and HUD maker, and in Case 3 a HUD business is to move to a buyer making the same product. In Case 1, the acquirer cited building software development capability as its purpose. As Case 3 shows, a seller can reconsider a divestiture when its outlook for ICE demand changes.
- Customers and business relationships — The mix and concentration of automaker customers, keiretsu shareholdings and trading terms. In Case 8, Honda cited the expansion of Yachiyo’s sales channels as its reason for partnering with Motherson, and Tachi-S cited the addition of Mazda and Suzuki as customers in acquiring TOYO H&I’s seating and interior business (completed August 2026). In Case 6, an automaker customer took part in the sale as a shareholder. In Case 11, both Valeo and Faurecia cited business with Japanese automakers.
- Production and footprint — Domestic and overseas plants, raw-material purchasing scale and logistics. The targets in Case 4 included sites in North America, Mexico, Europe, China and Thailand; the acquirer in Case 5 cited joint procurement of lead and shared logistics; and the acquirer in Case 6 cited joint purchasing and cooperation in overseas production.
7. Implications for Overseas Acquirers
Target universe
In Japan automotive parts M&A, most targets in the cases above were companies within major groups or affiliated with automakers (Cases 1 to 5, 8, 9, 11 and 12), and two were owner-held, non-listed companies (Cases 6 and 7); Case 10 was a contested tender offer for a listed component maker. Automakers and electronics majors have released stakes in suppliers to Japanese and foreign buyers alike, and owner-run suppliers have been sold to listed parts makers and to a succession platform. Owner-run companies disclose limited information, and approaching them, like approaching parent companies about non-core units, involves direct contact with the decision-makers.
Transaction structures
The cases show several structures: majority stakes with the seller retaining a minority (Cases 8 and 9), staged reductions of a parent’s stake (Case 1), tender offers for listed companies, including a contested one (for example, Cases 5, 8, 10, 11 and 12), business transfers limited to equipment and intellectual property (Case 3), and full acquisitions in which the owner reinvests part of the proceeds in the acquirer (Case 7). Timing also varies: regulatory approvals extended the closing in Case 1, and an agreed transaction was canceled in Case 3. The appropriate structure depends on the intentions of the parent company, the automaker or the owner, and on the acquirer’s integration plan.
What sellers emphasize
Parent-company sellers explained their decisions in terms of the business’s future and their own capital allocation: Toshiba described Niterra as the “best partner,” THK cited cost of capital and ROIC, and Hitachi cited its capital allocation policy. Honda, in transferring Yachiyo Industry, described Motherson as a strategic partner to expand the business, and Nissan described the sale of Calsonic Kansei as strengthening the competitiveness of an important partner. In the same transactions, acquirers made statements on continuity: Motherson stated that it did not plan major changes to Yutaka Giken’s management and would not change employment terms adversely for the time being, and YAGEO stated that it would respect Shibaura Electronics’ independence and keep its brand. In these cases, the sellers framed their decisions around the future of the business, and the acquirers addressed management and employment alongside the price.
8. Syntax Partners
Syntax Partners is a Japan-based M&A advisory firm that acts solely as financial advisor. In any transaction, we advise one side only, either the buyer or the seller. We advise on Japan automotive parts M&A, as well as manufacturing M&A more broadly, in both domestic and cross-border transactions.
Buy-side advisory
For foreign companies considering acquisitions or capital alliances in Japan, we support the full process: mapping targets based on their strategy, including non-listed owner-run companies and businesses within Japanese corporate groups; approaching owners and parent companies directly; negotiation; and execution. We work in Japanese and English, among other languages.
Sell-side advisory
As an advisor that maximizes the interests of sellers and owners, we support Japanese owners and parent companies considering a sale or business succession. The buyer universe we cover includes not only Japanese parts makers but also automakers, funds, succession platforms and overseas strategic buyers. Our transaction support draws on our understanding of the industry, including revenue mix by powertrain, relationships with automakers, and domestic and overseas production sites.
We welcome discussions at any stage, from early-stage exploration of acquisitions or partnerships in Japan to live transactions.
This article was prepared by Syntax Partners, Inc. based on public information, including companies’ official announcements, IR materials and press reports.