Samvardhana Motherson to Acquire 81% Stake in Honda Subsidiary Yutaka Giken for JPY 27 Billion

Samvardhana Motherson International Ltd (SAMIL)  is buying control of Honda’s metal-bits maker, Yutaka Giken for about JPY 27 billion, snapping up 81% of its voting rights, while Honda will keep a 19% foothold as a long-term partner. In the same manoeuvre, the Indian supplier will fold in Yutaka’s India arm outright and pick up 11% of Shinnichi Kogyo, a Yutaka subsidiary, tightening the bolts on a broader supply pact with Japan Inc.

What’s being bought: 

Indian auto parts major  Samvardhana Motherson International Limited (SAMIL) on Friday announced  through its indirect wholly owned subsidiary Motherson Global Investments B.V. (MGI BV), acquiring 81% of the voting rights in Yutaka Giken.  

Honda Motor Co., Ltd. currently owns 69.66% stake in the target company, while  the rest is owned by the public. Post completion of all steps, Honda shall continue to own remaining 19% voting rights shares in Yutaka Giken.

Simultaneously,.SAMIL directly or via its wholly owned subsidiary will also acquire 100% of the shares and voting rights in Yutaka Autoparts India Private Limited  from  Yutaka Giken including its nominee shareholder. 

Furthermore, MGI BV will also acquire an 11% stake in Shinnichi Kogyo Co., Ltd., which is a subsidiary of Yutaka Giken from Honda, SAMIL informed in a regulatory filing. The total cash outflow for the 81% shareholding in Yutaka Giken is estimated at approximately JPY 27 billion, or about USD 184 million (based on a conversion rate of 148 JPY to 1 USD), the company informed in a regulatory filing. 

Why it matters

For Honda, retaining 19% keeps a loyal supplier close without the encumbrance of full ownership, a familiar Japanese pattern that preserves influence and optionality. For Motherson, the prize is scale and access: Yutaka’s rotors, stators, drive, brake and thermal bits, spread across 13 factories and an R&D outpost in nine countries, bring electrification-friendly content that can be cross-sold to Japanese and emerging-market OEMs.

Yutaka’s craft lies in stamping and machining; ultra-high-speed laminations for stators, rotor assemblies, shafts and allied components which is exactly the sort of metalware that grows as hybrids proliferate and motors creep deeper into drivetrains. Integrating the initiative into Motherson’s global network of harnesses, modules, and plastics is expected to strengthen platform continuity and improve business share with Honda and similar OEMs.