Aisin Seiki to acquire stake in Toyota Kirloskar Auto Parts

Aisin Seiki Co, its subsidiary, Aisin AI Co, and Toyota Motor Corporation have made a further agreement regarding the consolidation of the development and production of manual transmissions under Aisin AI, which was agreed in principle in November 2014.

This agreement builds on the previous agreement, the aim of which was to strengthen the competitiveness of Aisin AI and Toyota by bringing the development and Japanese production of manual transmissions under one roof and allowing more efficient allocation of resources. More specifically, the development of manual transmissions for mass-produced vehicles will be consolidated at Aisin AI by the end of 2016. Toyota's manual transmissions production functions in Japan will be transferred to Aisin AI's plant in Japan around February 2016.

Outside Japan, Aisin Seiki plans to acquire a stake in Toyota Autoparts Philippines Inc. (in January 2016) and Toyota Kirloskar Auto Parts Private Ltd. (in July 2016). The ratio of its equity participation, which is expected to be between 25 percent and 34 percent, will be finalized after further discussion among the related parties.

By independently developing manual transmissions for mass-produced vehicles and enhancing global production and supply capabilities in Asia and beyond, Aisin AI and Aisin Seiki aim to achieve further growth to become a world-class specialist transmissions manufacturer. Toyota, on the other hand, will focus more resources on the development of next-generation transmissions and related aspects of vehicle performance.

The companies engaged in manufacturing manual transmissions are Toyota Autoparts Philippines and Toyota Kirloskar Auto Parts (TKAP) of Bangalore, India. While the Philippines operation makes manual transmissions (340,000 units per annum) and constant-velocity joints, TKAP produces manual transmissions (310,000 units per annum), engines, axles and propeller shafts.