Astemo Ltd. Company Profile

Background

Overview

Astemo Ltd., established on January 1, 2021, is a global automotive components manufacturer headquartered in Tokyo, Japan. The company was formed through the merger of Hitachi Automotive Systems, Keihin Corporation, Showa Corporation, and Nissin Kogyo, uniting their expertise to create a leading supplier in the automotive industry. The name "Astemo" stands for "Advanced Sustainable Technologies for Mobility," reflecting the company's commitment to providing advanced mobility solutions that contribute to a sustainable society.

Mission and Vision

Astemo's mission is to contribute to a sustainable society and improved quality of life by providing world-leading advanced mobility solutions. The company aims to address various social issues, including reducing traffic accidents and congestion, by developing technologies that enhance vehicle safety and efficiency. Additionally, Astemo focuses on environmental sustainability by improving fuel efficiency and reducing emissions, aligning with its vision of creating a society that is both people- and eco-friendly.

Industry Significance

As a major Tier One supplier, Astemo plays a pivotal role in the automotive industry, offering a comprehensive range of products and technologies. The company's expertise spans powertrain systems, chassis systems, advanced driver-assistance systems (ADAS), and motorcycle systems, positioning it as a key player in shaping the future of mobility. Astemo's global presence and technological innovations contribute significantly to the advancement of automotive technologies worldwide.

Key Strategic Focus

Core Objectives

Astemo is dedicated to advancing mobility through the development of innovative technologies that enhance vehicle performance, safety, and environmental sustainability. The company's strategic objectives include:

• Electrification: Developing electric powertrain systems, including inverters and electric motors, to support the transition to electric vehicles.

• Autonomous Driving: Advancing ADAS technologies to enable safer and more efficient autonomous driving experiences.

• Sustainability: Implementing environmentally friendly manufacturing processes and creating products that reduce emissions and improve fuel efficiency.

Areas of Specialization

Astemo specializes in several key areas:

• Powertrain Systems: Designing and manufacturing components that deliver power from the engine to the wheels, including electric motors and inverters.

• Chassis Systems: Developing systems that ensure vehicle stability and handling, such as suspension and steering components.

• Advanced Driver-Assistance Systems (ADAS): Creating technologies that enhance vehicle safety and assist drivers, including collision avoidance and lane-keeping systems.

• Motorcycle Systems: Providing components and technologies tailored for motorcycles, including braking systems and engine management.

Key Technologies Utilized

Astemo employs advanced technologies to achieve its strategic objectives:

• Electric Powertrain Technologies: Developing high-efficiency inverters and electric motors to support electric vehicle performance.

• ADAS Technologies: Utilizing sensors, artificial intelligence, and machine learning algorithms to create intelligent driver-assistance systems.

• Sustainable Manufacturing Practices: Implementing renewable energy sources and eco-friendly materials in production processes to minimize environmental impact.

Primary Markets and Conditions Targeted

Astemo targets global automotive markets, focusing on:

• Electric Vehicle (EV) Manufacturers: Supplying components that support the electrification of vehicles.

• Automotive OEMs: Providing advanced systems that enhance vehicle safety and performance.

• Motorcycle Manufacturers: Offering specialized components for the motorcycle industry.

• Aftermarket Suppliers: Delivering products for vehicle maintenance and upgrades.

Financials and Funding

Funding History

Astemo was established as a joint venture between Hitachi, Ltd. and Honda Motor Co., Ltd., with Hitachi holding a 66.6% stake and Honda holding 33.4%. In October 2023, the capital structure changed, with Hitachi and Honda each holding a 40% stake, and JIC Capital, Ltd. acquiring a 20% stake. This restructuring aimed to accelerate investment in advanced mobility technologies.

Recent Funding Rounds

In December 2025, Honda announced plans to acquire an additional 21% of Astemo's shares from Hitachi, increasing Honda's stake to 61%, JIC Capital's to 20%, and reducing Hitachi's to 19%. This move is expected to further strengthen Astemo's financial position and support its strategic initiatives.

Notable Investors

• Hitachi, Ltd.: A multinational conglomerate company with a diverse portfolio, including information technology, social infrastructure, and high functional materials.

• Honda Motor Co., Ltd.: A leading manufacturer of automobiles, motorcycles, and power equipment, known for its innovation in mobility solutions.

• JIC Capital, Ltd.: A private equity firm specializing in investments in the automotive and industrial sectors.

Intended Utilization of Capital

The capital raised through these funding rounds is intended to:

• Accelerate Research and Development: Invest in the development of advanced mobility technologies, including electric powertrains and autonomous driving systems.

• Expand Manufacturing Capabilities: Enhance production facilities to meet the growing demand for electric vehicle components.

• Strengthen Global Operations: Support the expansion of Astemo's global footprint, including establishing new regional headquarters and manufacturing plants.

Pipeline Development

Key Pipeline Candidates

Astemo is focusing on several key pipeline candidates:

• Electric Powertrain Systems: Developing high-efficiency inverters and electric motors to support the electrification of vehicles.

• Advanced Driver-Assistance Systems (ADAS): Creating integrated control systems that leverage sensor and artificial intelligence technologies for enhanced vehicle safety.

• Sustainable Manufacturing Technologies: Implementing renewable energy sources and eco-friendly materials in production processes to achieve carbon neutrality.

Stages of Development

These pipeline candidates are at various stages of development:

• Electric Powertrain Systems: Astemo has announced a £100 million investment in its Horwich manufacturing facility in Bolton, Greater Manchester, to establish a new production line dedicated to electric vehicle inverters.

• ADAS Technologies: The company is developing integrated AD/ADAS controls that leverage sensor and artificial intelligence technologies.

• Sustainable Manufacturing Technologies: Astemo is accelerating the use of renewable energy by expanding the installation of solar power generation equipment to become carbon neutral.

Target Conditions and Timelines

Astemo aims to achieve carbon-neutral production lines by fiscal 2030. The company has set annual production targets of five million units each for electric motors and inverters, with the goal of generating approximately $18 billion in sales and achieving a 15% EBITDA margin by fiscal 2025.

Technological Platform and Innovation

Proprietary Technologies

Astemo has developed several proprietary technologies:

• Thin Inverter Technology: A compact and energy-efficient inverter designed for electric vehicles.

• Direct Electrified Wheel System: A compact and lightweight direct drive system for in-wheel electric vehicles.

Significant Scientific Methods

Astemo employs advanced scientific methods, including:

• Model-Based Systems Engineering: A method used to develop complex systems through modeling and simulation.

• Virtual Validation: A process that uses virtual simulations to validate system performance, reducing the need for physical prototypes.

AI-Driven Capabilities

Astemo integrates artificial intelligence in:

• ADAS Systems: Utilizing AI algorithms to process sensor data for real-time decision-making in driver-assistance technologies.

• Manufacturing Processes: Implementing AI to optimize production efficiency and quality control.

Leadership Team

Key Executives

• Kohei Takeuchi: President & CEO of Astemo Ltd.

• Paul Carroll: Senior Vice President and President & CEO of Astemo Americas.

Professional Backgrounds and Contributions

• Kohei Takeuchi: