Samvardhana Motherson To Buy 81% Stake in Japan's Yutaka Giken for $184 Million; Share Price Surges Over 2%

Samvardhana Motherson International Limited (SAMIL), one of the world’s leading automotive component manufacturers, has announced a major acquisition to strengthen its global presence. 

Acquisition of Yutaka Giken and Related Entities

The Board of Directors of Samvardhana Motherson International Limited (“Company”) at its meeting held on August 29, 2025, has considered and approved to acquire 81% stakes with voting rights in Yutaka Giken Co., Ltd. (“YGCL”) and 11% stake in Shinnichi Kogyo Co., Ltd. (“Shinnichi”) through its indirect wholly owned subsidiary, Motherson Global Investments B.V. (“MGI BV”).

YGCL, incorporated under the laws of Japan and listed on the Tokyo Stock Exchange, is majority-owned by Honda Motor Co., Ltd., which holds a 69.66% stake. Following the acquisition process, Honda will continue to own 19% of YGCL.

Additionally, the Company will directly or through its wholly owned subsidiary acquire 100% of shares and voting rights in Yutaka Autoparts India Private Limited (“Yutaka India”) from YGCL. The entire acquisition will be executed in multiple steps, as outlined in the company’s disclosure.

Strategic Rationale and Financial Details

The transaction is aimed at further strengthening the Company’s global partnership with Honda and expanding its business with Japanese OEMs. It will also provide opportunities for cross-selling YGCL’s existing product portfolio to other OEMs, especially in emerging markets.

The acquisition will be a cash transaction with an expected outflow of approximately JPY 27 billion ($184 million). YGCL reported a turnover of ~JPY 179 billion ($1.2 billion) for FY 2024–25. With operations spanning across nine countries and a diverse portfolio including drive systems, braking systems, and thermal management solutions, the acquisition adds significant value to Samvardhana Motherson’s global footprint.

Regulatory approvals are required from authorities in Japan, the United States, China, Brazil, and Mexico. Subject to satisfactory completion of all conditions, the final closing is expected by Q1 FY 2026–27.

Read More: Samvardhana Motherson Issues $1.1 Billion Corporate Guarantees for Subsidiaries!

Samvardhana Motherson’s Share Performance 

As of August 26, 2025, at 11:40 AM, Samvardhana Motherson share price is trading at ₹94.40 per share, reflecting a surge of 2.49% from the previous closing price. 

Conclusion

This acquisition marks a significant milestone in Samvardhana Motherson’s growth strategy, aligning with its vision of strengthening relationships with global OEMs while expanding technological expertise and market presence. By acquiring majority control in Yutaka Giken and related companies, Motherson positions itself to enhance competitiveness and create long-term value for stakeholders.

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