The Competition Commission of India (CCI) approved Japanese automaker Honda Motor Co's proposal to acquire an additional 21% stake in automotive components manufacturer Astemo from Hitachi. According to reports from Business Standard, the regulator announced this approval on Tuesday, marking a significant step in Honda's strategic consolidation plans for the auto components sector. "The proposed combination involves Honda acquiring the stake in Astemo from Hitachi," the Commission stated in its official press release. The fair trade regulator approved the acquisition of 21% voting interest in Astemo, Ltd by Honda Motor Co, Ltd, ensuring compliance with competition laws before the transaction can proceed. A detailed order will follow according to the latest CCI announcement.
Following the transaction, Astemo will become a consolidated subsidiary of Honda, aligning with the Japanese automaker's strategic plan announced in December 2025. As reported by Business Standard, this acquisition will increase Honda's ownership stake from the current level to 61%, while Hitachi's stake will decrease to 19% and Japan's sovereign wealth fund JIC Capital will hold 20%. In December 2025, Honda announced that it would acquire an additional 21 per cent stake in Astemo from Hitachi, increasing its ownership and converting the company from an equity-method affiliate into a consolidated subsidiary. The transaction will convert Astemo from an equity-method affiliate into a fully consolidated subsidiary of Honda.
Honda Motor Co is the flagship entity of the Honda Group and operates in manufacturing and sale of automobiles, two-wheelers, power products and automotive components, along with research and development activities. According to Business Standard, in India, Honda Motor operates across automobiles, motorcycles, power products and component manufacturing businesses. Astemo was created through the integration of Hitachi Automotive Systems, Ltd, and three Honda subsidiaries: Keihin Corporation, Showa Corporation and Nissin Kogyo Co Ltd. As per the latest CCI press release, Astemo Ltd, incorporated in Japan and reorganized in 2021 following a merger, is presently jointly controlled by Honda, Hitachi and JICC-01 Investment Business Limited Partnership. In India, Astemo is primarily involved in manufacturing and sale of automotive components for automobiles and two-wheelers, sale of components for power products, and ancillary research and development activities.
Deals beyond a certain threshold require approval from CCI, which monitors unfair business practices and promotes fair competition in the marketplace. As reported by Business Standard, the fair trade regulator approved the acquisition of 21% voting interest in Astemo, Ltd by Honda Motor Co, Ltd, ensuring compliance with competition laws before the transaction can proceed. JIC Capital is a wholly-owned subsidiary of the Japan Investment Corporation, making it a strategic partner in this consolidation deal. The Commission's approval ensures that the transaction complies with India's competition laws and will proceed as planned.
