Motherson Group to buy 81% Stake In Honda Motor Arm Yachiyo Industry

Motherson Group to buy 81% Stake In Honda Motor Arm Yachiyo Industry

Motherson Group to buy 81% Stake In Honda Motor Arm Yachiyo Industry | Samvardhana Motherson International Ltd. has announced that it will going to buy 81% of stake in Yachiyo Industry’s four-wheeler business from Honda Motor Co. 

Motherson Group to buy 81% Stake In Honda Motor Arm Yachiyo Industry

This acquisition will be done through Samvardhana Motherson Automotive Systems Group BV which is one of the wholly-owned subsidiary of the company. Still Honda Motor will own a small part of stake in the business around 19% stakes. Yachiyo’s two-wheeler business which is under Goshi Giken, will going to hand over to the Japanese automaker before the purchase.

Yachiyo Industry manufactures components like sunroofs, plastic and steel fuel tanks, and plastic products. The company has its Headquarter in Tokyo, Japan. The company have been supplier for a long-term to Honda Motor for such components.

Motherson group has full filled its requirements to all manufacturing locations of Hero Honda. So this close partnership of Motherson with Honda Motor plants present globally, built a strong business relationship sees great potential for growth in sunroof systems and plastic fuel tanks, especially as hybrid cars become more popular.

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Due to an increase in demands in Automotive sector The Motherson Group Company expects sunroof systems to have high growth potential. And these figures are expecting a surge in application across car segments.

Chairman of Motherson group Mr.Vivek Chand Sehgal said about Motherson Group’s acquisition, these new products fit well with our plan to have more features in each car and to focus on what our customers want. He believes that this business will work well with Motherson’s current offerings and that there are many chances to expand this new business globally by using our connections with car manufacturers around the world.

Yachiyo’s business of four-wheeler car manufacturing have around 3,200 employees across 13 different manufacturing units and three R&D centres in eight different countries. This acquisition will bring more and more business towards the Motherson Group. So company’s share prices has also surged in recent days.

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