Denso is to terminate the agreement to transfer its spark plug and exhaust gas sensor business to automotive supplier Niterra.
The business transfer agreement, signed on 1 September 2025, covered the Japanese automotive supplier’s spark plug and exhaust gas sensor operations, including oxygen sensors and air-fuel ratio sensors.
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The two companies had signed a memorandum of understanding on 10 July 2023 to begin considering the transfer.
Denso said it requested termination after reviewing its business strategy “in light of changes in the market environment”.
It added that while electrification continues to “advance steadily”, demand for diverse powertrains has lasted longer than first expected, reflecting differing energy conditions and regulatory environments across regions and countries.
The company reassessed its strategy from the perspective of developing products and providing systems that support diversified mobility, as set out in its “CORE 2030” mid-term management plan.
Denso concluded that “continuing to operate the business would be optimal for maintaining and strengthening its ability to respond to increasingly diverse mobility needs”.
It then informed Niterra of its changed policy on the transfer.
“Going forward, Denso will continue to respond flexibly to evolving market conditions and customer needs, while contributing to the realisation of a sustainable mobility society and the development of the automotive industry”, Denso said in its statement.
In August this year, Nippon Seiki agreed to acquire Denso’s head-up display (HUD) business.
The transaction included Denso’s HUD development, manufacturing and sales activities in Japan, China, Spain, the US and Mexico.
The HUD unit is engaged in developing, manufacturing and selling head-up displays, which project driving-related data – including speed, navigation, fuel levels and traffic signage – onto a vehicle’s windscreen within the driver’s field of vision, removing the need to glance down at the instrument panel.
Nippon Seiki said that integrating Denso’s technology and manufacturing expertise with its own development and production base aims to “further optimise its development and production systems, build a stable global supply framework and strengthen its cost competitiveness”.
