Honda Motor has announced that it has delayed plans to make local automotive systems manufacturer Astemo Ltd a consolidated subsidiary. The Japanese automaker confirmed that it now expects to complete the acquisition of a majority stake in Astemo by the end of 2026, instead of by the end of the second quarter as it had originally announced in December 2025.
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Honda currently holds a 40% stake in Astemo, with Japanese multinational company Hitachi Ltd also holding a 40% stake and JIC Capital (Japanese Investment Corporation) the holding the remaining 20%. Honda has agreed to acquire an additional 21% stake in Astemo from Hitachi, which would lift its holding in the company to 61%.
Astemo produces a wide range of automotive systems, including hardware and software for chassis and powertrain systems, as well as autonomous driving/advanced driver assistance (ADAS) systems, and is central to Honda’s plans to develop and produce software-defined vehicles (SDVs) and improve its competitiveness.
Honda said in a statement: “In the face of the rapid and intense changes in the automotive business environment, it is essential for Honda, as a parent company, to lead the transformation of Astemo so that Astemo can pursue the establishment of a business structure that enables high-speed, high-efficiency development of AI and software technologies, which will become increasingly necessary in the era of SDVs. Based on this belief, Honda, Hitachi and JIC Capital agreed in December 2025, that Honda will acquire additional shares of Astemo, equivalent to 21% of all outstanding shares, from Hitachi, thereby changing the shareholding structure to 61% Honda, 19% Hitachi, and 20% JIC Capital.
Honda confirmed that since the initial announcement, it has been working to obtain the necessary clearances and approvals, but that delays in the approval process have resulted in the transaction now expected to be completed by the end of the third quarter of the current fiscal year (FY2026), which ends in March 2027.
