Motherson to acquire Ichikoh Industries’ mirror business

Ichikoh Industries, a subsidiary of Valeo SE, largely caters to Japanese OEMs. With its first acquisition in Japan, Motherson will add three plants across Japan and China and 260 patents too.

Autocar Pro News Desk By Autocar Pro News Desk calendar 26 Sep 2022 Views icon3373 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Ichikoh Industries, a subsidiary of Valeo, largely caters to Japanese OEMs. With its first acquisition in Japan, Motherson adds three plants across Japan and China and 260 patents too.

Ichikoh Industries, a subsidiary of Valeo, largely caters to Japanese OEMs. With its first acquisition in Japan, Motherson adds three plants across Japan and China and 260 patents too.

Samvardhana Motherson Automotive Systems Group BV (SMRPBV), through  its Vision systems division, has entered into an agreement with Ichikoh Industries (a subsidiary of Valeo SE) in Japan to buy 100% stake of its mirror business at an enterprise value of JPY 5.2 billion (Rs 286 crore)..  

 The transaction includes Ichikoh’s mirror business (development and manufacturing of automotive mirrors and associated products) in Japan and China, catering largely to Japanese OEMs. The target business reported revenues of JPY 15.8 billion (Rs 869 crore) in 2021. With this transaction Motherson will add three manufacturing facilities across Japan and China and 260 patents to its IP portfolio. 

This will be the third acquisition under the Vision systems business division during the current five-year plan   following acquisitions in Turkey and China. With this transaction, Vision systems will achieve majority of its strategic geographical expansion objectives that were highlighted as a part of the of the Group’s 2025 five- year plan. The increased share of Japanese OEMs which were previously under-represented in the Vision system portfolio will create additional growth opportunities for the division in the future, according to   SMRPBV.

The proposed deal is expected to be closed in 6-8 months

This acquisition will be a major milestone in the group’s relationship with Japan which began in 1983 with its first collaboration. As the third   largest automotive production hub with strong technology leadership, Japan remains a key target market for Motherson. In July 2022, Motherson established two facilities in Hamamatsu, Japan and this acquisition is the next major step in line with the Group strategy of 3CX10 with increased geographic and customer diversification. Completion of this transaction will provide Motherson with strong local R&D and manufacturing footprint, further strengthening group’s relationship with Japanese OEMs. The improved customer connect with Japanese OEMs is expected to be a key catalyst for growth across the global footprint of these customers. 

 Commenting on the acquisition, Vivek Chaand Sehgal, Chairman, Motherson said, “Inorganic growth is an integral part of our Vision 2025. With this acquisition, Motherson will acquire design and manufacturing footprint in Japan enabling closer coordination and stronger relationship with Japanese customers both for their local as well as global business. This will also help Visions Systems to expand its geographical reach in China and in its ability to grow business with Japanese OEMs. Being an EPS accretive transaction, we are confident that we will be able to create value for our customers and shareholders by this acquisition”  

 Christophe Vilatte, President and CEO, Ichikoh Industries, said: "Ichikoh is a pioneer of the automotive mirror business in Japan with its long history and close relationship with Japanese OEM customers. I am convinced that with Motherson Group's advanced technologies and global presence, Ichikoh mirror business will be in a stronger position to continue meeting its customers’ expectations and realizing further growth. At the same time, Ichikoh will focus on its expertise in lighting, which is currently undergoing a profound revolution." 

 Ichikoh Industries, which is headquartered in Isehara-shi, Japan, is a Tier-1 supplier and has been a preferred automotive supplier in Japan for more than 55 years producing and supplying rear-view mirrors for automotive applications. The mirror business of Ichikoh has three state-of-the-art manufacturing facilities in Japan and China. 

Main image: Courtesy

Magna augments ADAS capabilities, joins 5G innovation program

auther Autocar Pro News Desk calendar05 Dec 2023

NorthStar partnership with Telia and Ericsson to help support Magna’s V2V and V2X developments; private 5G network testi...

Tesla rolls out Cybertruck: 550km range, 845bhp and bulletproof bodywork

auther Autocar Pro News Desk calendar02 Dec 2023

Tesla delivers first examples of its electric pick-up truck to customers after long and problematic gestation. 

Wardwizard Innovations and Triton forge strategic alliance for EV manufacturing in India, UAE 

auther Autocar Pro News Desk calendar01 Dec 2023

US-based Triton EV picks Wardwizard as its manufacturing partner for battery operated trucks 2- and 3-wheelers for the I...