Samvardhana Motherson has recently acquired Atsumitec, a precision component manufacturer based in Japan, for $57 million. This acquisition has allowed Samvardhana Motherson to secure a 95% stake in Atsumitec, while Honda Motors retains a 5% share.

As a result of this announcement, Samvardhana Motherson's shares experienced a temporary increase of over 3% during mid-day trading before stabilizing.

Atsumitec specializes in the production of high-precision machined components, specifically gear shifters, chassis, and transmission parts for both four-wheelers and two-wheelers. It is projected that Atsumitec will generate a turnover of $412 million for the fiscal year 2024.

This acquisition aligns with Samvardhana Motherson's strategic goals of strengthening its business relationships with Japanese original equipment manufacturers (OEMs) and expanding its market presence. Additionally, this acquisition will enable Samvardhana Motherson to enter new product lines and geographies, such as Vietnam, particularly in the two-wheeler segment.